Small colleges would get a break from a special tax on university endowment earnings under the latest draft of Senate Republicans’ domestic policy megabill.
A revised version of the legislation released overnight exempts schools from the levy if they have fewer than 3,000 tuition-paying students. That’s up from the current threshold of 500 tuition-paying students that lawmakers had previously planned to stick by.
The change comes as lawmakers attempt to finalize the details of their sprawling tax, energy, defense and immigration bill they hope to get to President Donald Trump’s desk by early next month.
The updates to the endowment tax come after the Senate’s parliamentarian had nixed a proposed carveout for religious schools because it violated the chamber’s rules about what can go into so-called reconciliation bills. Senate Republicans had already dialed back a proposed increase in the endowment tax approved last month by the House.
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