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IA HF2240
Bill
Status
1/30/2026
Primary Sponsor
Higher Education
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AI Summary
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Creates an annual "endowment tax" on Iowa colleges and universities with endowments exceeding $500 million, taxed at the highest corporate income tax rate on the amount above that threshold
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Limits fees institutions can charge on endowment-related activities: no more than 5% of gross proceeds on any gift received, and no more than 1% annual fee for endowment management and administration
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Establishes a "high-wage and high-demand jobs account" within the Iowa tuition grants fund after January 1, 2028, funded by the new endowment tax revenue
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Tax revenue supplements tuition grants for students at accredited private institutions who are enrolled in majors corresponding to high-wage, high-demand jobs identified by Iowa Workforce Development
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Officially titled the "Tax the Endowments Act" and applies to both state Board of Regents institutions and accredited private institutions meeting the endowment threshold
Legislative Description
A bill for an act creating an endowment tax on the endowment value of certain Iowa colleges and universities, limiting charges relating to certain endowment funds, making appropriations to workforce grant and incentive programs, and making appropriations to supplement tuition grants for high-wage and high-demand jobs.(Formerly HSB 544.)
Last Action
Introduced, referred to Ways and Means. H.J. 188.
1/30/2026