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Tax Change for Universities: Excluding Students from Endowment Tax Calculation

This bill amends the Internal Revenue Code to modify how private colleges and universities calculate whether they are subject to the excise tax on net investment income. It excludes students who do not meet federal student aid eligibility requirements under the Higher Education Act of 1965 from the threshold calculation. This change applies to taxable years beginning after December 31, 2024.
Key points
University Tax Rules: Modifies the student count calculation used to determine if a private institution is subject to the excise tax on investment income.
Student Exclusion: Students not meeting federal aid eligibility requirements (under section 484(a)(5) of the Higher Education Act) are excluded from the threshold calculation.
Reporting Requirement: Institutions must report the number of students counted in the calculation both before and after applying this exclusion.
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Additional Information
Print number: 118_HR_8913
Sponsor: Rep. Ferguson, A. Drew [R-GA-3]
Process start date: 2024-07-02
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OFFICIAL LEGAL TITLE

Protecting American Students Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_8913.

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 2024-07-02.

What are the main provisions?

Key points include:

  • University Tax Rules: Modifies the student count calculation used to determine if a private institution is subject to the excise tax on investment income.
  • Student Exclusion: Students not meeting federal aid eligibility requirements (under section 484(a)(5) of the Higher Education Act) are excluded from the threshold calculation.
  • Reporting Requirement: Institutions must report the number of students counted in the calculation both before and after applying this exclusion.
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. Ferguson, A. Drew [R-GA-3].

What is the latest detailed status?

The latest detailed status is: Placed on the Union Calendar, Calendar No. 798.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

CATEGORIES

Taxes Education