119 HR 1006 IH: Higher Education Accountability Tax Act U.S. House of Representatives 2025-02-05 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I119th CONGRESS1st SessionH. R. 1006IN THE HOUSE OF REPRESENTATIVESFebruary 5, 2025Mr. Joyce of Ohio (for himself and Ms. Malliotakis) introduced the following bill; which was referred to the Committee on Ways and MeansA BILLTo 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, 2024.