tag: Endowment tax

In 2017, the Tax Cuts and Jobs Act imposed a 1.4 percent excise tax on net investment earnings of a set of private colleges and universities that meet certain conditions. Currently, the excise tax applies to private colleges and universities that have at least 500 students and assets per student greater than $500,000, in practice reaching highly selective, high-endowment schools.[1] In 2023, 56 institutions were subject to the tax and paid a total of $380 million.[2] The stated…