H.R. 1006: Higher Education Accountability Tax Act

119th Congress · introduced 2025-02-05 · Taxation · Latest: Referred to the House Committee on Ways and Means.

federal

Official title

Higher Education Accountability Tax Act

Plain summary

Higher Education Accountability Tax Act This bill increases the excise tax on the net investment income of certain private university and college endowments and expands the number of universities and colleges that are subject to the excise tax. 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 endowment assets of 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. Endowment assets that are used directly in carrying out the institution's tax-exempt educational purpose are excluded from the tax. The bill increases the amount of the excise tax to (1) 10% of the net investment income from a university and college endowment, or (2) 20% of the net investment income from a university and college endowment maintained by an institution that increases tuition over a three-year period (preceding the current tax year) at a rate that is higher than the inflation rate. Under the bill, the tuition price for purposes of determining whether the 20% excise tax rate applies is the average yearly price charged to all first-time, full-time undergraduate students (including students who receive financial aid). Further, the bill expands the number of universities and colleges subject to the excise tax by lowering the per student threshold to $250,000.

Congressional Research Service summary (Introduced in House), quoted unchanged (nonpartisan). Read the source.

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Official text

Higher Education Accountability Tax Act

Source: Congressional Research Service summary (Introduced in House)

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Officials and money

Sponsor: Rep. Joyce, David P. [R-OH-14] · 1 cosponsors

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Words on this page, explained (2)

Bill: A proposed law. It becomes law only if it passes the legislature and is signed by the president or governor (or a veto is overridden).
Endowment: A fund that is invested so its earnings pay for a purpose over time, while the main amount is kept.

Plain meanings written from linked sources. All words.

Sources

Congressional Research Service summary (Introduced in House)
Congress.gov
Data: GovInfo BILLSTATUS bulk data (Library of Congress), BILLSTATUS-119hr1006.xml <https://www.govinfo.gov/bulkdata/BILLSTATUS/119/hr>

Record fed-us-cong119-hr1006 · catalog fed-us-congress-bills-cong119 · updated 2026-11-03 by psicol fed-bills