Senate Tax Writers Considering Limits on Tuition Remission, UBIT on Hedge Fund Investments
May 30, 2007
As it prepares to mark up a bill to expand federal education tax benefits, the Senate Finance Committee is considering a number of tax increases that could adversely impact colleges and universities. Finance Committee Chair Max Baucus (D-MT) is exploring ways to make the Hope and Lifetime Learning tax credits available to more lower-income students, whose taxable income is too low to enable them to take advantage of the credits, which are nonrefundable.
Under current "pay-as-you-go" budget rules, revenues required to pay for the expansion of the Hope and Lifetime Learning tax credits must be offset elsewhere in the tax code.
Thus far, no formal proposals have been drafted. However, in recent weeks there has been a great deal of discussion and speculation related to potential revenue raisers, including:
- a limitation on the tax-free tuition benefits that colleges provide to employees, spouses, and dependents;
- a proposal to subject exempt organizations' off-shore investments to unrelated business income tax;
- a requirement for institutions to spend 5 percent of endowment, similar to what is required for private foundations; and
- a punitive measure that would cap tax-exempt bond volumes for institutions, if tuition increases exceed a yet-to-be-determined limit.
The Senate Finance Committee could address these issues as early as the week of June 4.
NACUBO is following these developments closely and working with association colleagues to respond strategically to these issues with committee staff.
- Recent Executive Orders Aimed at Pay Gaps and Overtime Expansion
- New GASB Concepts Address Measurement
- Behind the Costs of a College Degree
- 2014 Higher Education Accounting Forum
April 27-29, 2014
- ON-DEMAND: Understanding the Results of the 2013 NACUBO-Commonfund Study of Endowments, and a Look to 2014 and Beyond
- ON-DEMAND: How Behavioral Changes Helped Cut Energy Usage in Half
- ON-DEMAND: Developing a Market-Informed Approach to Tuition Pricing
- ON-DEMAND: Responsibility Center Management: The Process Necessary to Complete a Successful Implementation
- ON-DEMAND: OD: Responsibility Center Management: How Innovations Have Changed the Nature of RCM
- A Guide to College and University Budgeting: Foundations for Institutional Effectiveness, 4th ed. - by Larry Goldstein
- NACUBO's Guide to Unitizing Investment Pools - by Mary S. Wheeler
- Managing and Collecting Student Accounts and Loans - by David R. Glezerman and Dennis DeSantis