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118-hr-9331Committee
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Higher Education Accountability Tax Act

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Summary

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This bill amends the Internal Revenue Code to increase the federal excise tax on investment income of private colleges and universities from 1.4% to 10%, with an additional increase to 20% for institutions that raise net prices faster than inflation. It also expands the tax to apply to institutions with endowments as low as $250,000 (down from $500,000). The changes take effect for taxable years beginning after December 31, 2024.

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