Bill · H.R. 1128· House(119-HR-1128)
Endowment Accountability Act
- Introduced
- 2/7/2025
- Last activity
- 2/7/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Michael Lawler
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, known as the "Endowment Accountability Act," aims to amend the Internal Revenue Code of 1986. It seeks to increase the excise tax rate on investment income for private colleges and universities from 1.4 percent to 10 percent. Additionally, the bill intends to broaden the definition of an applicable educational institution. It does this by lowering the threshold of aggregate fair market value per student from $500,000 to $200,000.
Yes· 3 of 4
Does this raise the taxes companies pay?+7
The bill increases the excise tax rate on investment income for private colleges and universities from 1.4 percent to 10 percent.
Does this make college cost less?+4
By taxing large endowments at a higher rate, the bill seeks to increase accountability and potentially redirect resources toward institutional costs.
Does this make the government pay for what it commits to?+3
The bill increases federal revenue by significantly raising the excise tax rate on educational institution investment income.
The opposite
Would high-income households be better off under this?-2
The bill targets large endowments often associated with high-wealth institutions.
Who it would affect, and how
Potential Positive Impacts for People
-
Increased Tax Rate: The bill increases the excise tax rate on investment income from 1.4 percent to 10 percent (Section 2(a)). This change increases the rate of the tax based on the investment income of private colleges and universities.
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Broadened Definition of Institutions: The bill lowers the threshold for aggregate fair market value per student from $500,000 to $200,000 (Section 2(b)). This broadens the definition of an applicable educational institution.
Potential Negative Impacts for People
-
Higher Tax Burden on Institutions: The amendment strikes the 1.4 percent rate and inserts a 10 percent rate (Section 2(a)). This results in an increase in the rate of the excise tax based on the investment income of private colleges and universities.
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Expanded Scope of Taxable Institutions: By lowering the asset per student threshold from $500,000 to $200,000, more institutions may fall under the definition of an applicable educational institution (Section 2(b)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Increases Corporate Taxes+7Improves Fiscal Responsibility+3
- Education And Technology
- Improves College Affordability+4
- Demographic And Interest Groups
- Good For Students+3Good For High Income Households-2
- 2/7/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House