The Tax Reform Act of 1986 made changes with negative implications for scholarships, fellowships, and grants for study or research. The Act also affects three fringe benefits available to academics: tuition remission plans, educational assistance plans, and the provision of faculty housing for no rent or a nominal rent. (MLW)

An overview of the former taxation of scholarships and fellowships is presented, along with information on the practical implications of the changes brought about by the Tax Reform Act of 1986. Included is a copy of the guidelines issued by the Treasury Department and supplementary legislative history information from the "General Explanation…

Capital finance, once limited to financing physical plant, today includes all assets and aspects of institutional life. It now encompasses a wide range of approaches and techniques including pooled debt, capital leases, futures contracts, equity investments, and research partnerships. (MLW)