September 18, 2020
Treasury Releases Endowment Tax Regulations
In the works since the Tax Cuts and Jobs Act of 2017 imposed a new 1.4% excise tax on private college endowment investment returns, the Department of the Treasury has finally released its endowment tax regulations, which are being submitted for publication in the Federal Register.
Treasury issued proposed guidance on how the tax would be assessed in 2019. The final guidance and all public comments are available to review at www.regulations.gov.
The tax is based on a formula of endowment assets of $500,000 per Full Time Equivalent (FTE) student. Using the most recent IPEDS data, this tax affects approximately 30 private, nonprofit colleges and excludes public colleges.
NAICU will be doing an assessment of the new rules as well as continue its efforts to see the tax repealed.
Treasury issued proposed guidance on how the tax would be assessed in 2019. The final guidance and all public comments are available to review at www.regulations.gov.
The tax is based on a formula of endowment assets of $500,000 per Full Time Equivalent (FTE) student. Using the most recent IPEDS data, this tax affects approximately 30 private, nonprofit colleges and excludes public colleges.
NAICU will be doing an assessment of the new rules as well as continue its efforts to see the tax repealed.
For more information, please contact:
Karin Johns