Section 1 Short title
This Act may be cited as the “Endowment Accountability Act”.
Endowment Accountability Act
A BILL
To amend the Internal Revenue Code of 1986 to increase the rate of the excise tax based on investment income of private colleges and universities and to broaden the definition of applicable educational institution by lowering the threshold with respect to aggregate fair market value per student, and for other purposes.
Sec. 2 Excise tax based on investment income of private colleges and universities
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”.
Lowering asset per student threshold for definition of applicable educational institution— Section 4968(b)(1)(D) of such Code is amended by striking “$500,000” and inserting “$200,000”.
Effective date— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.