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Tax breaks for colleges providing student financial aid

This bill proposes changes to taxes for certain private colleges. Colleges that provide enough financial aid to students could pay less tax on their investment income. This aims to encourage colleges to offer more financial support to undergraduate students.
Key points
Colleges may pay less tax on investment income if they provide a certain amount in grants and scholarships to first-time, full-time undergraduate students.
To qualify for the tax break, colleges must report average federal student loan amounts received by students.
The asset-per-student threshold that determines which colleges are taxed will be adjusted for inflation.
Clarifies that the 500-student limit affecting which colleges are taxed only counts tuition-paying undergraduate students.
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Expired
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Additional Information
Print number: 117_HR_5152
Sponsor: Rep. Boyle, Brendan F. [D-PA-2]
Process start date: 2021-09-03
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Summarized by: gemini-2.5-flash-preview-04-17
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Higher Education Endowment Tax Reform Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_5152.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-09-03.

What are the main provisions?

Key points include:

  • Colleges may pay less tax on investment income if they provide a certain amount in grants and scholarships to first-time, full-time undergraduate students.
  • To qualify for the tax break, colleges must report average federal student loan amounts received by students.
  • The asset-per-student threshold that determines which colleges are taxed will be adjusted for inflation.
  • Clarifies that the 500-student limit affecting which colleges are taxed only counts tuition-paying undergraduate students.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Boyle, Brendan F. [D-PA-2].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

CATEGORIES

Taxes Education