Consolidated Education Tax Credits Proposed

On Tuesday, Representative Rahm Emanuel (D-IL), introduced H.R. 2450, the Universal Education and Lifetime Learning Act, a bill to consolidate and expand the Hope Credit, the Lifetime Learning Credit, and a tuition and fees credit into one education tax credit worth up to $3,000 annually.


A full credit would be available to families making $100,000 annually, while partial credit would go toward families making as much as $160,000. The bill would also provide a refundable 50 percent credit, which could be used for tuition and, notably, for non-tuition costs, such as room and board, books and other supplies. According to Rep. Emanuel, “This bill makes college more affordable and accessible for the middle class and provides a significant investment in ensuring that our workforce remains the envy of the world.” While that statement may be more bravado than reality, a simplification of the IRS paperwork in conjunction with an expansion of the tax benefits is certainly welcomed.
The Senate Finance Committee is scheduled to mark up the bill after the week-long Memorial Day break. We will continue to track its progress throughout the year.
Resources:
“Emanuel, Camp, Bayh Introduce Bipartisan, Bicameral Tax Bill to Make Higher Education Universal,” Congressman Rahm Emanuel, Press Release, May 27, 2007, http://www.house.gov/apps/list/press/il05_emanuel/highered.html
Author: DAD