On January 31, 2025 the National Association of College and University Business Officers (NACUBO) released an official letter to the majority and minority leaders of Congress outlining what it believes should be the higher education priorities of the 119th Congress.
NACUBO, founded in 1962, is a nonprofit professional organization representing chief administration and financial officers at more than 1,700 colleges and universities across the United States. NACUBO’s mission is to advance the economic vitality, business practices, and support of higher education institutions in pursuit of their missions.
According to NACUBO’s letter, the organization wants to emphasize the following policy priorities:
- Protect Tax-Exempt Status
- Ensure College Affordability by Investing in Students and Families
- Revisit the 2017 Tax Cuts and Jobs Act
Per Senator Ron Wyden’s memo (D-OR) in January 2025, there are several proposed revisions to tax policy surrounding higher education that are under consideration. According to the memo, possible items for reform include the inclusion of scholarships in taxable income, repeal of the Lifetime Learning Credit and the American Opportunity Tax Credit, and repeal of the student loan interest deduction.
In their letter, NACUBO shares concerns on certain provisions of the tax code that may affect higher education organizations, such as expanding the excise tax on endowments, eliminating tax-exempt bonds, or curtailing charitable contributions.
On February 18, 2025, NACUBO also released a summary designed to provide an overview of the numerous tax issues currently under consideration by Congress. The organization highlighted the following areas of tax policy under consideration:
- Both education tax credits – the American Opportunity Tax Credit and Lifetime Learning Credit
- Student loan interest deduction
- Employer-Provided Tuition Assistance
- Nontaxability of qualified scholarships
- Charitable giving
- Tax-exempt bond financing
- Excise tax on net investment income
NACUBO’s letter and summary to both Congress and the public at large detail the proposed tax changes that could impact higher education institutions. These tax changes, if enacted, could create far-reaching and transformative implications to the higher education sector.
The summary provided above is based on the content of NACUBO’s letter and does not reflect the views or opinions of Schneider Downs. The information is presented in a nonpartisan manner to ensure an objective understanding of the topic.
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