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Redesignates subsection (o) as subsection (p) and inserts a new subsection (o) requiring applicable educational institutions described in section 4968(b) to report specified student counts on the return required under subsection (a).
Adds a new paragraph (3) to subsection (b) specifying that, for purposes of paragraph (1)(D), students who do not meet the student eligibility requirements under section 484(a)(5) of the Higher Education Act of 1965 are not counted.
Limits which students count when deciding if a private college owes the federal excise tax on large endowments. Only students who are eligible for federal student aid under the Higher Education Act’s citizenship/eligible‑noncitizen rule will be counted toward the assets‑per‑student threshold used for the tax.
It also requires affected colleges to report two student numbers on their annual tax return: the total used before this new rule and the total after applying it. These changes apply to tax years starting after December 31, 2025.
Referred to the House Committee on Ways and Means.
Introduced March 6, 2025 by Vernon G. Buchanan · Last progress March 6, 2025