Berea College benefits from Bipartisan Budget Act

02/09/2018 09:27 AM

WASHINGTON- Berea College has been spared from a large tax bill under the Bipartisan Budget Act.

Senate Majority Leader Mitch McConnell, R-Kentucky, and U.S. Representative Andy Barr, R-Lexington, secured a provision in the new law to exempt Berea College from an excise tax imposed on large private college endowments.

Under the Tax Cuts and Jobs Act, a provision was included that would have cost Berea College, which provides free tuition to low-income students, about $1 million per year. A provision in the Bipartisan Budget Act exempts schools with fewer than 500 tuition-paying students from the endowment tax.

“We at Berea College are very pleased that the Bipartisan Budget Act passed by Congress includes language restoring the exemption from the new endowment excise tax for schools with fewer than 500 tuition-paying students.” said Dr. Lyle Roelofs, President of Berea College. “We are thrilled the bill passed, not only for the direction it provides for the federal budget, but also for this relief for colleges that use their endowment to provide access to higher education. At Berea, none of our 1600 students pay tuition, and we are grateful for Senator McConnell and Congressman Barr’s work to address this new tax liability, which would have forced us to scale back our mission of educating students who would not otherwise be able to attain a college degree.”

The Bipartisan Budget Act passed and was signed into law early Friday morning.

Michon Lindstrom

Michon is a producer for Pure Politics. Michon comes to Kentucky from Springfield, Illinois where she served as the statehouse reporter for the NBC affiliate. During her time in the Land of Lincoln she covered the state’s two year budget impasse and the largest school funding overall in Illinois history. Pure Politics airs weeknights at 7 and 11:30 on Spectrum News. Follow Michon on Twitter at @MichonLindstrom or reach her by email at michon.lindstrom@charter.com

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