1. Short title This Act may be cited as the Woke Endowment Security Tax Act of 2023 or the WEST Act of 2023 . 2. Excise tax on certain large private college and university endowments (a) In general Subchapter H of chapter 42 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 4969. Excise tax on certain large private college and university endowments (a) Tax imposed There is hereby imposed on each specified applicable educational institution for the institution's first taxable year beginning in 2023 a tax equal to 6 percent of the aggregate fair market value of the assets of the institution at the end of the preceding taxable year. (b) Specified applicable educational institution For purposes of this subchapter, with respect to a taxable year, the term specified applicable educational institution means— (1) any applicable educational institution, other than an institution which is religious in nature, the aggregate fair market value of the assets of which at the end of the preceding taxable year (other than those assets which are used directly in carrying out the institution's exempt purpose) is at least $12,200,000,000, and (2) any applicable educational institution— (A) which operates a college on behalf of a State pursuant to State statute or contractual agreements, and (B) the aggregate fair market value of the assets of which at the end of the preceding taxable year (other than those assets which are used directly in carrying out the institution's exempt purpose) is at least $9,000,000,000. (c) Other terms For purposes of this section— (1) Assets The rules of section 4968(d) shall apply. (2) Student The rules of section 4968(b)(2) shall apply. . (b) Clerical amendment The table of sections for subchapter H of chapter 42 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item: Sec. 4969. Excise tax on certain large private college and university endowments. . (c) Effective date The amendments made by this section shall apply to