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This bill amends the Internal Revenue Code to exclude certain students from the calculation used to determine whether private colleges and universities are subject to a 1.4% excise tax on net investment income. Specifically, students who do not meet federal student aid eligibility requirements under the Higher Education Act would not be counted when calculating whether an institution's endowment exceeds the $500 million threshold that triggers the tax. The bill also requires institutions subject to the excise tax to report both the number of students counted before and after applying this exclusion.
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