Following is an update on tax reform given previous communication with the university community. As Marquette has previously stated, the university has no position on federal tax reform legislation; however, we have been communicating with members of Congress on several provisions in the proposal that will have an effect on higher education.
Both houses of Congress today signed H.R. 1, and President Trump is expected to sign this legislation before Christmas.
Marquette is pleased that the final legislation preserves the current law for the following key provisions:
- qualified tuition reduction [Sec. 117(d)]
- employer-provided education assistance [Sec. 127]
- student loan interest deduction
The bill still contains some provisions of concern:
- increases the standard deduction which is expected to impact charitable giving
- imposes a 1.4% excise tax on private institution endowments over $500,000 per student with a 500-student minimum (half the students must be from the United States)
- eliminates the 80-percent charitable deductibility for college athletic seating rights
To learn more, this Washington Post article may be helpful.