Higher Education Accountability Tax Act

Bill: 117-hr-8883
Sponsor: full_name: Rep. Joyce, David P. [R-OH-14]
Introduced: 2022-09-19
Policy area: Taxation
Latest action: action_date: 2022-09-19
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2022-09-19
action_desc: Introduced in House
text: <p> <strong>Higher Education Accountability Tax Act </strong></p> <p>This bill increases from 1.4% to 10% the rate of the excise tax on the net investment income of applicable educational institutions (i.e., certain private colleges and universities). It further increases to 20% the rate of such tax on net-price-increase institutions (i.e., educational institutions whose net price increased at a rate exceeding the rate of increase in the Consumer Price Index during a specified three-year period). The bill also modifies the definition of <em>applicable educational institution</em> to lower the per student threshold in that definition from $500,000 to $250,000 (thus making more such institutions subject to the excise tax).</p>

tv_txt: I 117th CONGRESS 2d Session H. R. 8883 IN THE HOUSE OF REPRESENTATIVES September 19, 2022 Mr. Joyce of Ohio (for himself, Mr. Donalds , and Mrs. Flores ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to modify the excise tax on investment income of private colleges and universities.

1. Short title This Act may be cited as the Higher Education Accountability Tax Act . 2. Modification of excise tax on investment income of private colleges and universities (a) Increase in rate of tax Section 4968(a) of the Internal Revenue Code of 1986 is amended by striking 1.4 percent and inserting 10 percent . (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 (20 percent in the case of a net-price-increase institution) after 10 percent . (2) Net-price-increase institution 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: (2) Net-price-increase institution The term net-price-increase institution 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 net price has the meaning given such term by section 132(a)(3) of the Higher Education Act of 1986 ( 20 U.S.C. 1015a(a)(3) ) 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). . (c) Expansion of institutions subject to tax Section 4968(b)(1)(D) of such Code is amended by striking $500,000 and inserting $250,000 . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2022.