House Narrows Endowment Tax Proposal

An amendment to House Republicans' tax overhaul plan approved Monday shrinks the number of colleges that would be affected by an excise tax on endowments.

In tax reform legislation introduced last week, a 1.4 percent excise tax was applied to private university endowments valued at $100,000 per full-time student. The amendment raises that threshold, applying the tax to private university endowments valued at $250,000.

A list of college endowments and student ratios for fall 2014 provided by the National Association of Independent Colleges and Universities indicated that 70 colleges would be affected by the tax.