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Ivy League Endowments Face 1.4% Levy Under Trump Tax Overhaul

  • Tax rules give universities clarity about if they pay new tax
  • 2017 tax law included levy on endowments at wealthy colleges
Students and visitors walk on the Stanford University campus in Stanford, California.

Students and visitors walk on the Stanford University campus in Stanford, California.

Photographer: Justin Sullivan/Getty Images

The Internal Revenue Service has released rules with the formula that determines how much Ivy League universities and other wealthy colleges will pay under a new tax.

The rules define how colleges and universities count the number of full-time students and offer some guidance about what income and assets are subject to the tax. Those factors and others will determine how much they will owe on their investments under the new 1.4% excise tax, according to IRS guidance issued Friday.