H.R. 1006

119th CONGRESS 1st Session

To amend the Internal Revenue Code of 1986 to modify the excise tax on investment income of private colleges and universities.

IN THE HOUSE OF REPRESENTATIVES · February 5, 2025 · Sponsor: Mr. Joyce of Ohio · Committee: Committee on Ways and Means

Table of contents

• H.R. 1006
  • SEC. 1. Short title
  • SEC. 2. Modification of excise tax on investment income of private colleges and universities

SEC. 1. Short title

• This Act may be cited as the Higher Education Accountability Tax Act.

SEC. 2. Modification of excise tax on investment income of private colleges and universities

• (a) Increase in rate of tax
  • of the Internal Revenue Code of 1986 is amended by striking 1.4 percentand inserting 10 percent. Section 4968(a)
• (b) Additional increase in rate of tax for institutions with increases in net price
  • (1) In general
    • Section 4968(a) of such Code, as amended by subsection (a), is amended by inserting after .
  • (2) Net-price-increase institution
    • The term means any applicable educational institution for any taxable year if, during the 3-taxable-year period ending with the taxable year immediately preceding such taxable year, the net price of such institution increased at a rate which exceeds the rate of increase in the Consumer Price Index (as defined in section 1(f)(5)) for such period. For purposes of the preceding sentence, the term has the meaning given such term by section 132(a)(3) of the Higher Education Act of 1986 () except that such price shall be determined by taking into account all first-time, full-time undergraduate students at the institution (in addition to such students who receive student aid). net-price-increase institution 20 U.S.C. 1015a(a)(3)
    • Section 4968(b) of such Code is amended by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following new paragraph:
• (c) Expansion of institutions subject to tax
  • Section 4968(b)(1)(D) of such Code is amended by striking $500,000and inserting 50,000.
• (d) Effective date
  • The amendments made by this section shall apply to taxable years beginning after December 31, 2024.