PRIA Logo™
119-hr-1128119th CongressWALLET

Endowment Accountability Act

Sponsored By: Representative Lawler, Michael [R-NY-17]

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.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

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, Michael [R-NY-17]

NY • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
Back to Legislation