Higher Education Accountability Tax Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 1006 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 1006 To amend the Internal Revenue Code of 1986 to modify the excise tax on investment income of private colleges and universities. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES February 5, 2025 Mr. Joyce of Ohio (for himself and Ms. Malliotakis) introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to modify the excise tax on investment income of private colleges and universities. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Higher Education Accountability Tax Act''. SEC. 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 t