Tax Policy Impacting Education and Training

In addition to funding for workforce development programs, the federal government uses tax credits and deductions to offset costs for training incurred by workers and / or their employers.

Currently five provisions of the Internal Revenue Code offer tax assistance to individuals and businesses incurring expenses for postsecondary education: the Hope Credit (HC), the Lifetime Learning Credit (LLC), the Tuition and Fees Deduction, the Student Loan Interest Deduction, and Section 127 Employer-Provided Assistance.

Unfortunately, many lower-income workers do not benefit from these tax provisions.  TWA is seeking reforms that will expand the range of workers who can take advantage of these tax preferences.

TWA Platform and Overview

Higher Education Tax Credits Fact Sheet, TWA Policy Platform, 110th Congress (Updated February 2008)

TWA's Overview of Tax Credits and Deductions for Education and Training

TWA Analysis: Making Higher Education Tax Credits Work for Non-Traditional Students (September 2007)

TWA Analysis: Senate Higher Education Tax Credit Bills (May 2007)

TWA Summary: Higher Education Tax Credit Proposals (March 2007)

Current Federal Law

Text of Legislation