H.R. 1006 — Higher Education Accountability Tax Act

This section establishes the short title of the Act as the “Higher Education Accountability Tax Act.”

This section revises the definition of “net price” in section 132(a)(3) of the Higher Education Act of 1986 (20 U.S.C. 1015a(a)(3)) for purposes of the excise tax on the investment income of private colleges and universities under section 4968 of the Internal Revenue Code of 1986. It defines a “net-price-increase institution” as an applicable educational institution whose net price increased over the preceding 3-taxable-year period at a rate exceeding the Consumer Price Index, and it requires that net price be calculated using all first-time, full-time undergraduate students at the institution, rather than only those receiving student aid.