Restricting Tax-Exempt Entities from Investing in Troublesome Chinese Companies.
This bill forces tax-exempt organizations, including pension funds and charities, to divest from specific Chinese companies linked to the government. If these entities fail to eliminate holdings in designated Chinese firms, they risk losing their tax-exempt status, potentially impacting retirement fund management and operational costs. Citizens should be aware that their retirement plans may be forced to change investment strategies.
Key points
Tax-exempt organizations (like pension plans and universities) will lose their tax benefits if they hold interests in Chinese companies linked to the government or the Chinese Communist Party.
These organizations must file annual reports detailing all such holdings, including derivatives and funds replicating financial returns.
Waivers are possible but only under extraordinary circumstances; financial returns alone are explicitly not considered a valid justification for continued investment.
Expired
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