Bill > HR1905

This bill amends the Internal Revenue Code to modify how certain private colleges and universities are subject to an excise tax on net investment income. Specifically, the bill changes the calculation of student numbers used to determine whether an institution is liable for this tax by excluding students who do not meet specific federal student eligibility requirements under the Higher Education Act. Under the new provisions, colleges will need to report two sets of student numbers on their tax returns: one that includes all students and another that excludes ineligible students. The goal appears to be providing some tax relief or adjustment for private educational institutions by narrowing the definition of which students count towards the tax threshold. The changes will take effect for taxable years beginning after December 31, 2025, giving institutions time to prepare for the new reporting and calculation requirements. This legislation aims to protect certain students from being counted in a way that might increase a college's tax burden, potentially benefiting both the institutions and the specific student populations affected.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1905/all-info