Endowment Accountability Act
Sponsored By: Representative Lawler
Introduced
Summary
Raises the tax on private college endowment earnings and expands which schools are covered. The bill targets investment income from wealthier private colleges to bring more endowment returns under federal tax rules.
Show full summary
- Private colleges and universities with large endowments would face a much higher excise tax on investment income, with the rate rising from 1.4 percent to 10 percent. This directly increases the federal tax on endowment returns.
- More private institutions would fall under the rule because the bill lowers the aggregate fair market value per student threshold from $500,000 to $200,000. Schools that were previously below the cutoff could become subject to the excise tax.
- The changes would apply to taxable years beginning after the date of enactment, setting the start point for when institutions must account for the higher rate and expanded coverage.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 1 costs, 0 mixed.
Higher endowment taxes on private colleges
This bill would raise the tax on private colleges' net investment income from 1.4% to 10%. It would also lower the endowment-per-student cutoff from $500,000 to $200,000, so more colleges could be taxed. These changes would apply to taxable years starting after the bill is enacted.
Sponsors & CoSponsors
Sponsor
Lawler
NY • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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