What This Bill Does · Plain English
Summary · Congress.gov
Endowment Accountability Act This bill increases the excise tax on the net investment income of certain private university and college endowments. The bill also expands the number of endowments subject to the excise tax by lowering the endowment asset amount per-student threshold. 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 (per-student threshold) 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 10% of the net investment income from such university and college endowments and lowers the per-student threshold to $200,000.
Action Timeline
2025-02-07
Referred to the House Committee on Ways and Means.
2025-02-07
Introduced in House
2025-02-07
Introduced in House
Frequently Asked Questions
Did HR.1128 pass?
HR.1128 is still alive. Current stage: COMMITTEE. Pass likelihood: 33%.
What does HR.1128 do?
Endowment Accountability Act This bill increases the excise tax on the net investment income of certain private university and college endowments. The bill also expands the number of endowments subject to the excise tax by lowering the endowment asset amount per-student threshold. 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 (per-student threshold) pay an excise tax in the amount of 1.4% on the net investment income from such e…
Who sponsored HR.1128?
HR.1128 was sponsored by Michael Lawler (R-New York).
Full Bill Text
119 HR 1128 IH: Endowment Accountability Act U.S. House of Representatives 2025-02-07 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 1st Session H. R. 1128 IN THE HOUSE OF REPRESENTATIVES February 7, 2025 Mr. Lawler introduced the following bill; which was referred to the Committee on Ways and Means A BILL 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. 1. Short title This Act may be cited as the Endowment Accountability Act . 2. Excise tax based on investment income of private colleges and universities (a) Increase in rate of tax Section 4968(a) of the Internal Revenue Code of 1986 is amended by striking 1.4 percent and inserting 10 percent . (b) Lowering asset per student threshold for definition of applicable educational institution Section 4968(b)(1)(D) of such Code is amended by striking $500,000 and inserting $200,000 . (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
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