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.