To amend the Internal Revenue Code of 1986 to increase the rate of the excise tax based on investment income of private colleges and universities and to broaden the definition of applicable educational institution by lowering the threshold with respect to aggregate fair market value per student, and for other purposes.
About This Bill
Committee
Latest Action · July 30, 2024
Referred to the House Committee on Ways and Means.
The Endowment Accountability Act would significantly increase taxes on the investment income of wealthy private colleges and universities. Currently, these institutions pay a 1.4 percent excise tax on their net investment income, but this bill would raise that rate to 10 percent. The legislation also lowers the threshold for which colleges are subject to this tax, expanding it to apply to schools with endowments worth $200,000 or more per student, down from the current $500,000 per student threshold. This change would affect a broader range of private educational institutions by capturing those with smaller but still substantial endowments. The amendments would take effect for tax years beginning after the bill is enacted.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.