The R&D tax credit encourages companies to make new discoveries and advancements and to partner with entities, such as universities, to conduct research and development activities. The credit allows certain research expenses to be deducted from overall corporate income taxes.
Endowments are composed of charitable donations to support students and science -- but an unprecedented tax on these endowments, passed in 2017, is reducing these funds' ability to continue supporting student financial aid and scientific breakthroughs that benefit everyday American families.
AAU joined ACE and 7 other associations in submitting comments to the Internal Revenue Service on a possible error in the Inflation Reduction Act of 2022 that could prevent some public universities from benefiting from green energy tax credits included in the law.
Unrelated business taxable income (UBIT) is income from a trade or business that is regularly carried on by a tax-exempt organization and is not substantially related to the organization's exempt purpose.
The vast majority of public and private universities and colleges are tax-exempt entities as defined by IRC Section 501(c)(3) because of their educational purposes—purposes that the federal government has long recognized as fundamental to fostering the productive and civic capacity of its citizens—…