Last week, the U.S. House passed legislation focused on extending certain taxes. The American Jobs and Closing Tax Loopholes Act (H.R. 4213), with a vote of 215 to 204, includes a provision that would extend the above-the-line tax deduction for qualified education expenses for one year (through 2010).
Under the provision, taxpayers who qualify for a greater net reduction in tax liability from current tax credits, the Hope and Lifetime Learning credits, would not qualify for the above-the-line tax deduction for qualified education expenses.
The Act, according to the U.S. House Ways & Means Committee, also includes several other provisions that impact higher education.
- Supports 350,000 jobs for youth ages 14-24 through summer employment programs.
- Extends for one-year (through 2010) the provision that encourages businesses to contribute computer equipment and software to elementary, secondary, and post-secondary schools.
- Expands the current grant program to education institutions to develop, offer and improve education and career training programs for workers eligible for Trade Adjustment Assistance for Communities to also benefit individuals who are eligible for unemployment insurance, who are likely to be eligible for unemployment insurance or who have exhausted their unemployment insurance.
The Act now goes to the Senate where additional amendments will likely be considered.