TRADES Act

The TRADES Act increases the tax rate on investment income for certain educational organizations from 8 percent to 15 percent. This change is designed to generate additional revenue that the Treasury Secretary will use to fund career and technical education programs for states. The new funding amount will be calculated based on the extra tax revenue collected in the previous year and transferred annually to support these educational initiatives. The provisions take effect for taxable years beginning more than 12 months after the law is enacted.