Iowa bill proposes an endowment tax on certain colleges, limits endowment fees, and funds workforce grants and tuition supplements.

The bill creates an endowment tax on the endowment value of certain Iowa colleges and universities, with a rate of 15% on values exceeding $250 million starting from 2027. It limits the fees higher education institutions can charge for managing endowments to 5% of gross proceeds. The tax revenue from state-governed institutions funds workforce grants, while revenue from private institutions funds tuition grants for students in high-wage and high-demand job majors.

Iowa bill proposes an endowment tax on certain colleges, limits endowment fees, and funds workforce grants and tuition supplements.

The bill creates an endowment tax on the endowment value of certain Iowa colleges and universities, with a rate of 15% on values exceeding $250 million starting from 2027. It limits the fees higher education institutions can charge for managing endowments to 5% of gross proceeds. The tax revenue from state-governed institutions funds workforce grants, while revenue from private institutions funds tuition grants for students in high-wage and high-demand job majors.