,i  #aagth ,,congress  #ast ,session    
,h4 ,r4 #eaeb  ,,in ,,the ,,house ,,of  
,,representatives  ,september #c1       
#bjba,mr4 ,brendan ,f4 ,boyle of        
,pennsylvania introduced the following  
bill2 which was referred to the         
,committee on ,ways and ,means  ,a      
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to provide for a        
phaseout of the investment income excise
 tax for certain private colleges and   
universities1 and for other purposes4   
#a4 ,short title ,this ,act may be cited
 as the ,higher ,education ,endowment   
,tax ,reform ,act4  #b4 ,phaseout of    
investment income excise tax for private
 colleges and universities providing    
sufficient grants and scholarships  7a7 
,in general ,section #difh of the       
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new subsection3  7e7 ,phaseout
 for institutions providing qualified   
aid  7#a7 ,in general ,the amount of tax
 imposed by subsection 7a7 7determined  

without regard to this subsection7 shall
 be reduced 7but not below zero7 by the 
amount which bears the same ratio to    
such amount of tax 7as so determined7   
as-- 7,a7 the excess 7if any7 of-- 7i7  
the aggregate amount of qualified aid   
awards provided by the institution to   
its first-time1 full-time undergraduate 
students for academic periods beginning 
during the taxable year1 over  7ii7 an  
amount equal to #bj percent of the      
aggregate undergraduate tuition and fees
 received by the institution from       
first-time1 full-time undergraduate     
students for such academic periods1     
bears to  7,b7 an amount equal to #ac   
percent of such aggregate undergraduate 
tuition and fees so received4  7#b7     
,institution must meet reporting        
requirement  7,a7 ,in general ,paragraph
 7#a7 shall not apply to an applicable  
educational institution for a taxable   
year unless such institution furnishes  
to the ,secretary1 and makes widely     
available1 a statement detailing the    

average aggregate amount of ,federal    
student loans received by a student for 
attendance at the institution1 averaged 
among each of the following groups of   
first-time1 full-time undergraduate     
students who during the taxable year    
completed a course of study for which   
the institution awarded a baccalaureate 
degree3 7i7 ,all such students4  7ii7   
,the students who have been awarded a   
,federal ,pell ,grant under subpart #a  
of part ,a of title ,,iv of the ,higher 
,education ,act of #aife for attendance 
at the institution4  7iii7 ,the students
 who received work-study assistance     
under part ,c of title ,,iv of such ,act
 for attendance at such institution4    
7iv7 ,the students who were provided    
such ,federal student loans4  7,b7 ,form
 and manner for report ,such statement  
shall be furnished at such time and in  
such form and manner1 and made widely   
available1 under such regulations or    
guidance as the ,secretary may          
prescribe4  7,c7 ,federal student loans 

,for purposes of this paragraph1 the    
term ,federal student loans means a loan
 made under part ,d of title ,,iv of the
 ,higher ,education ,act of #aife1      
except such term does not include a     
,federal ,direct ,,plus ,loan made on   
behalf of a dependent student4  7#c7    
,other definitions ,for purposes of this
 subsection-- 7,a7 ,first-time1         
full-time undergraduate student ,the    
term first-time1 full-time undergraduate
 student shall have the same meaning as 
when used in section #acb of the ,higher
 ,education ,act of #aife4  7,b7        
,qualified aid awards ,the term         
qualified aid awards means1 with respect
 to any applicable educational          
institution1 grants and scholarships to 
the extent used for undergraduate       
tuition and fees4  7,c7 ,undergraduate  
tuition and fees ,the term undergraduate
 tuition and fees means1 with respect to
 any institution1 the tuition and fees  
required for the enrollment or          
attendance of a student as an           

undergraduate student at the            
institution4  4  7b7 ,effective date    
,the amendment made by this section     
shall apply to taxable years beginning  
after '''4  #c4 ,inflation adjustment   
and clarification for definition of     
applicable educational institution  7a7 
,inflation adjustment to per student    
asset threshold ,section #difh7;b7 of   
the ,internal ,revenue ,code of #aihf is
 amended by adding at the end the       
following new paragraph3  7#c7          
,inflation adjustment ,in the case of   
any taxable year beginning after #bjbb1 
the dollar amount in paragraph 7#a77;,d7
 shall be increased by an amount equal  
to-- 7,a7 such dollar amount1 multiplied
 by  7,b7 the cost-of-living adjustment 
determined under section #a7;f77#c7 for 
the calendar year in which the taxable  
year begins1 determined by substituting 
calendar year #bjba for calendar year   
#bjaf in subparagraph 7,a77ii7 thereof4 
,if any increase determined under this  
paragraph is not a multiple of #a1jjj1  

such increase shall be rounded to the   
nearest multiple of #a1jjj4  4  7b7     
,clarification of #ejj student threshold
 ,section #difh7;b77#a77;,a7 of such    
,code is amended by inserting below the 
graduate level after #ejj tuition-paying
 students4  7c7 ,effective date ,the    
amendment made by this section shall    
apply to taxable years beginning after  
,december #ca1 #bjba4