Endowment Tax Fairness Act

2/11/2025, 12:53 PM
Congress
119

Number
HR - 446

Introduced on
2025-01-15

# Amendments
0

Sponsors
+5

Cosponsors
+5

Variations and Revisions

1/15/2025

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

Endowment Tax Fairness Act

This bill increases the excise tax on the net investment income of certain private university and college endowments. 

Under current law, certain private universities and colleges with 500 or more tuition-paying students (of which more than 50% are located in the United States) and endowments that are at least $500,000 per student pay an excise tax in the amount of 1.4% on the net investment income from such endowments.

The bill increases the amount of the excise tax to 21% of the net investment income from such university and college endowments. 

Further, the bill provides that amounts collected from the increase to the excise tax on the net investment income from such university and college endowments are (1) to be deposited into the general fund of the Treasury; and (2) used to reduce the national deficit and, subsequently, the national debt. 

Bill 119 HR 446 aims to make changes to the Internal Revenue Code of 1986 by increasing the rate of the excise tax on investment income of private colleges and universities. This means that these institutions would be required to pay a higher tax rate on any income they earn from their investments.

The purpose of this bill is to address concerns about the growing wealth and endowments of private colleges and universities, which some believe are not being used effectively to benefit students or the public. By increasing the tax rate on investment income, supporters of the bill hope to encourage these institutions to spend more of their resources on educational programs, scholarships, and other initiatives that directly benefit students and the community.

Opponents of the bill argue that it unfairly targets private colleges and universities and could have unintended consequences, such as reducing the amount of financial aid available to students or limiting the ability of these institutions to invest in important research and infrastructure projects. Overall, Bill 119 HR 446 is a controversial piece of legislation that seeks to address issues related to the financial practices of private colleges and universities. It will be important for lawmakers to carefully consider the potential impacts of this bill on higher education institutions and students before making a decision on its passage.
Alternative Names
Official Title as IntroducedTo amend the Internal Revenue Code of 1986 to increase the rate of the excise tax on investment income of private colleges and universities.

Comments

Recent Activity

Latest Summary3/26/2025

Endowment Tax Fairness Act

This bill increases the excise tax on the net investment income of certain private university and college endowments. 

Under current law, certain private universities and colleges w...


Latest Action1/15/2025
Referred to the House Committee on Ways and Means.