Bill > HR1006

This bill amends the Internal Revenue Code to modify the excise tax on investment income for private colleges and universities. Specifically, the bill increases the tax rate from 1.4% to 10% for most eligible institutions, with a potential further increase to 20% for "net-price-increase institutions" - colleges that raise their net price (the cost of attendance minus financial aid) faster than the Consumer Price Index over a three-year period. The bill also expands the scope of institutions subject to this tax by lowering the endowment threshold from $500,000 to $250,000, meaning more colleges will now be required to pay the tax. The changes would take effect for taxable years beginning after December 31, 2024. The goal appears to be to create financial accountability for higher education institutions by imposing higher taxes on those that increase student costs significantly, potentially incentivizing colleges to control tuition and fee increases.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1006/all-info