Higher Education Accountability Tax Act

HR 1006, the Higher Education Accountability Tax Act, increases the excise tax on investment income for private colleges and universities from 1.4% to 10% for all affected institutions, with an additional 20% tax for schools that raise tuition faster than inflation. It directly affects private colleges with annual investment income exceeding $250,000, particularly those increasing net tuition prices (for first-time, full-time undergraduates) at a rate exceeding the Consumer Price Index (CPI) over three years. The bill modifies existing tax code provisions to implement these rate changes, effective for taxable years beginning after December 31, 2024. This creates a tiered tax structure based on both investment income size and tuition growth relative to inflation.