The WEST Act of 2025 would add a 6% excise tax on certain large college and university endowments. It would apply to a qualifying institution’s first taxable year beginning in 2025. To meet the asset threshold, a private institution that is not religious in nature must have at least $11.9 billion in assets, excluding assets used directly for its exempt purpose. A college operating on behalf of a state under state law or an agreement must have at least $10.5 billion in such assets.
The tax would apply to qualifying institutions, not directly to individuals under the text provided. The text does not say whether or how institutions might change their operations, tuition, or financial aid.
A qualifying institution would owe a tax equal to 6% of the fair market value of its assets at the end of the prior taxable year. The bill text does not provide an estimate of total tax payments or other costs.
No publicly available information.
No publicly available information.