A bill to amend section 4940 of the Internal Revenue Code of 1954 to change the name of the amount imposed thereby on certain investment income from "excise tax" to "service charge", and to reduce such amount from 4 percent to 1 1/2 percent.

Redefines the excise tax imposed under the Internal Revenue Code of 1954 on specified investment income of private foundations from "excise tax" to "service charge". Reduces such tax in amount from 14 percent to 1 1/2 percent. (Amends 26 U.S.C. 4940)