What does Preamble of Endowment Accountability Act do?

This bill proposes to amend the Internal Revenue Code of 1986. The proposed amendment aims to increase the rate of the excise tax based on investment income for private colleges and universities. The bill also intends to broaden the definition of 'applicable educational institution' by lowering the threshold related to aggregate fair market value per student.

What does SHORT TITLE. of Endowment Accountability Act do?

This bill is formally titled the Endowment Accountability Act.

What does EXCISE TAX BASED ON INVESTMENT INCOME OF PRIVATE COLLEGES AND of Endowment Accountability Act do?

This section amends Section 4968 of the Internal Revenue Code of 1986. The rate of tax under Section 4968(a) is increased from 1.4 percent to 10 percent. The asset per student threshold for defining an applicable educational institution under Section 4968(b)(1)(D) is lowered from $500,000 to $200,000. These amendments apply to taxable years beginning after the date of enactment of this Act.

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Endowment Accountability Act

Last updated: 2/7/2025 · Introduced: 2/7/2025

Author: Michael Lawler (R-NY)

TL;DR (AI)

This bill increases the excise tax on investment income for private colleges and universities from 1.4% to 10%.
The bill lowers the asset per student threshold for identifying institutions subject to this excise tax from $500,000 to $200,000.
These changes apply to taxable years beginning after the bill's enactment.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

3 sections

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