Federal Tax Reform
To the Central College community,
Many have expressed interest in proposed federal tax reform legislation. In light of the recent U.S. House tax reform bill, H.R. 1, I’d like to provide you with contextual information regarding aspects of the bill that affect the higher education landscape and the potential impacts on the future of Central College and the students and families we serve.
Provisions of the House bill that could impact the higher education landscape and potentially Central College in future years are outlined below.
- Preserving the Charitable Deduction and IRA Charitable Rollover – Additional information can be found here.
- The Elimination of the Student Loan Interest Deduction – Currently, taxpayers that meet certain requirements can deduct up to $2,500 in federal student loan interest payments each year. Additional information can be found here.
- New Excise Tax on Endowments – Under the provision, certain private colleges and universities would be subject to a 1.4 percent excise tax on net investment income. Additional information can be found here and here.
- The Elimination of Section 117(d) – IRS code Section 117 (d) permits educational institutions, including colleges and universities, to provide their employees, spouses or dependents with tuition reductions that are excluded from taxable income. Additional information can found here and here.
The college will continue to monitor tax reform legislation as proposed bills work through the legislative process. I encourage you to be an engaged citizen in the policy making process by exercising your interest in these public policy matters. Contact your federal representatives, as you see fit. You may find your respective elected officials here.
Mark L. Putnam