New Tax on Large Private University Endowments: Financial Impact.
This act introduces a new 6% excise tax on large endowments of certain private colleges and universities. It aims to tax educational institutions with significant assets, which could affect their ability to fund programs and scholarships, potentially impacting education costs for students.
Key points
Imposes a 6% excise tax on private college endowments valued at $12.2 billion or more (or $9 billion for state-operated colleges).
The tax applies to institutional assets at the end of the preceding tax year, excluding those directly used for the institution's exempt purpose.
The changes are effective for tax years beginning after December 31, 2022, meaning the tax could apply as early as 2023.
Expired
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