Iowa HF2240 creates an endowment tax on certain college endowments, limits fees, and allocates funds to workforce grants and tuition grants.

Iowa HF2240 introduces an annual endowment tax on certain colleges and universities with endowments exceeding $500 million. The tax applies to the endowment value at the highest corporate income tax rate. The bill limits fees charged by institutions to 5% of gift proceeds and annual fees to 1% of endowment value. Tax revenues from public institutions fund workforce grants, while those from private institutions support tuition grants for high-wage and high-demand jobs.

Iowa HF2240 creates an endowment tax on certain college endowments, limits fees, and allocates funds to workforce grants and tuition grants.

Iowa HF2240 introduces an annual endowment tax on certain colleges and universities with endowments exceeding $500 million. The tax applies to the endowment value at the highest corporate income tax rate. The bill limits fees charged by institutions to 5% of gift proceeds and annual fees to 1% of endowment value. Tax revenues from public institutions fund workforce grants, while those from private institutions support tuition grants for high-wage and high-demand jobs.