Endowment Tax Fairness Act

Bill: 119-hr-446
Sponsor: full_name: Rep. Nehls, Troy E. [R-TX-22]
Introduced: 2025-01-15
Policy area: Taxation
Latest action: action_date: 2025-01-15
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2025-01-15
action_desc: Introduced in House
text: <p><strong>Endowment Tax Fairness Act</strong></p><p>This bill increases the excise tax on the net investment income of certain private university and college endowments.&nbsp;</p><p>Under current law, certain private&nbsp;universities and colleges with 500 or more tuition-paying students (of which more than 50%&nbsp;are located in the United States) and endowments that are at least $500,000 per student pay an excise tax in the amount of 1.4% on the net investment income from such endowments.</p><p>The bill increases the amount of the excise tax to 21% of the net investment income from such university and college endowments.&nbsp;</p><p>Further, the bill provides that amounts collected from the increase to the&nbsp;excise tax on the net investment income from such university and college endowments are (1) to be deposited into the general fund of the&nbsp;Treasury; and (2) used to reduce the national deficit and, subsequently, the national debt.&nbsp;</p>

tv_txt: I 119th CONGRESS 1st Session H. R. 446 IN THE HOUSE OF REPRESENTATIVES January 15, 2025 Mr. Nehls (for himself and Ms. Boebert ) 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 increase the rate of the excise tax on investment income of private colleges and universities.

1. Short title This Act may be cited as the Endowment Tax Fairness Act . 2. Excise tax based 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 21 percent . (b) Effective date The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act. (c) Federal debt reduction The revenue derived from the amendment made by this section shall be deposited in the general fund of the Treasury and shall be used to reduce the national deficit, to the extent thereof, and thereafter to reduce the national debt.