Under current law, Colorado College will be subject to a 1.4% excise tax on our net investment income for the first time this coming fiscal year (assuming the aggregate fair market value of our assets — including the endowment, which comprises the largest portion — will meet the threshold of $500,000 per student on June 30, 2025). Proposals under discussion in Congress could raise that tax to 7%, 14%, or even as high as 21%.

• If the excise tax rate increases from 1.4% to 21%, our endowment tax liability could increase from around $300,000–$350,000 to as high as $7 million annually.
• Our endowment funds cover about 20% of the annual operating budget — 40 percent of which supports students directly in the form of financial aid.
• For the 2024–25 academic year, about 30% of Colorado College’s $67 million financial aid budget will come from the endowment.

Colorado College is proud to be one of only 84 colleges and universities nationwide that meet the full demonstrated financial need of all admitted students.

Should it go into effect, this tax would compromise our ability to:

• Admit students who have financial need,
• Sustain the immersive, high-impact practices like research and field study that define a CC education,
• Prevent sharp increases in tuition,
• Maintain competitive compensation for faculty and staff, and
• Address deferred maintenance of our campus infrastructure.

Additional federal proposals could also eliminate our ability to issue tax-exempt debt, bonds that usually carry lower interest rates and more favorable terms for borrowers, reducing the overall borrowing costs. This would significantly impact development of essential infrastructure at the College, including the planned new science building.