Treasury Solicits Comments on Linking Education Tax Credit with Community Service Requirement
April 21, 2010
Following up on the expansion of the education tax credit enacted last year, the Treasury Department is seeking comments on the feasibility of the federal government instituting a community service requirement as a condition for receiving a tax credit for tuition and related expenses.
Background. The March 24 notice originates from provisions in the American Recovery and Reinvestment Act of 2009 (ARRA) creating the American Opportunity Tax Credit (revamped Hope credit). In addition to expansion of the Hope Credit (available for four years instead of only the first two, and additional eligible expenses), ARRA called for two studies related to the education tax credits: one to examine the interplay with Pell Grants, and another on the feasibility of implementing a community service requirement.
The less than one-page notice poses several questions to the higher education community, including the threshold question of whether students should be required to fulfill a community service requirement in order to receive an education tax credit. The remaining questions touch on the potential role colleges and universities may have in:
- being required to administer the new tax credit-related community service requirement for students;
- any operational and administrative hurdles institutions would face in meeting a requirement to "administer" this new service requirement;
- making "meaningful" community service requirements available to students;
• how campuses would be affected by the additional reporting that may be required in a revised Form 1098-T or by linking the service requirement to campus-based work study.
Responding to Treasury. Working with the NACUBO Tax Council, NACUBO has received a good deal of input from member institutions and is aware of the numerous administrative, policy, and financial challenges institutions would be faced with in the event of such burdensome requirements.
NACUBO is part of an inter-association effort developing comments on behalf of the higher education community, led by the American Council on Education. Individual institutions are also encouraged to submit comments on their own behalf. Please share your institution's response with us via email to firstname.lastname@example.org.
The deadline for submitting comments to Treasury is April 29.
Director, Tax Policy
- Final Rules Issued on the Violence Against Women Act
- FASB Gives Go-Ahead for Exposure Draft on NFP Reporting
- CDC Advises Colleges, Universities and Students about Ebola
- 2015 Intermediate Accounting and Reporting - Winter
January 22-23, 2015
- 2015 Endowment and Debt Management Forum
February 4-6, 2015
- 2015 Unrelated Business Income Tax
February 25-27, 2015
- WEBCAST: How to Build, Develop, and Support a Compliance Program at Your Institution
Wednesday, November 19, 2014 1:00PM ET
- ON-DEMAND: Strategic Tuition Assessment and Tuition Restructuring
- ON-DEMAND: Are Shared Services Right for Your Organization – The KU Journey
- ON-DEMAND: VIRTUAL: 2014 Annual Meeting
- ON-DEMAND: VIRTUAL: Student Financial Services Conference
- ON-DEMAND: VIRTUAL: Higher Education Accounting Forum
- A Guide to College and University Budgeting: Foundations for Institutional Effectiveness, 4th ed. - by Larry Goldstein
- NACUBO's Guide to Unitizing Investment Pools - by Mary S. Wheeler
- Managing and Collecting Student Accounts and Loans - by David R. Glezerman and Dennis DeSantis