To amend the Internal Revenue Code of 1986 to increase the rate of the excise tax based on investment income of private colleges and universities and to broaden the definition of applicable educational institution by lowering the threshold with respect to aggregate fair market value per student, and for other purposes.

Bill 119 hr 1128, also known as the College Endowment Tax Act, aims to amend the Internal Revenue Code of 1986 in order to increase the rate of the excise tax on investment income for private colleges and universities. The bill also seeks to broaden the definition of applicable educational institutions by lowering the threshold for aggregate fair market value per student.

Under the proposed legislation, private colleges and universities with large endowments would be subject to a higher excise tax rate on their investment income. This tax increase is intended to generate additional revenue that can be used to support other educational initiatives.

Additionally, the bill aims to redefine what qualifies as an applicable educational institution by lowering the threshold for aggregate fair market value per student. This change would expand the number of institutions subject to the excise tax on investment income. Overall, the College Endowment Tax Act is designed to address concerns about the financial resources of private colleges and universities and ensure that they are contributing their fair share to support educational opportunities for all students.