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Expired (and Expiring) Higher Education Tax Provisions Concern NACUBO

August 10, 2012

On August 1, 2012, NACUBO and several other higher education associations joined the American Council on Education in a letter to congressional leaders calling for the reinstatement and extension of higher education-related tax provisions that have already expired or will expire soon.

At the end of 2012, for example, the following are all scheduled to expire:

  • American Opportunity Tax Credit (AOTC).
  • Employer-Provided Educational Assistance (Section 127) benefits.
  • The expanded Student Loan Interest Deduction (SLID).
  • Expanded Coverdell Education Savings Accounts (ESAs).

"It is essential that these tax provisions be extended this year to help make higher education accessible for millions of Americans and to ensure our nation will have the educated citizenry the future requires," noted NACUBO in the letter.

Two other tax provisions important to students, families and institutions-the above-the-line deduction for qualified tuition and related expenses and the IRA Charitable Rollover-expired at the end of 2011. The tuition deduction is particularly beneficial to graduate students who are ineligible for the AOTC.

On July 25, the Senate Finance Committee held a hearing on, "Education Tax Incentives and Tax Reform." To further express support for the aforementioned tax provisions, NACUBO joined ACE and a number of other higher education associations in submitting testimony for the record of that hearing. The testimony not only reiterates support for the tax provisions but also addresses concerns raised during the hearing about college costs.

On August 2, the Senate Finance Committee approved the Family and Business Tax Cut Certainty Act, which extends some expired and expiring tax breaks; the legislation, however, did not include extension of Section 127 or the AOTC. The House has not yet taken action on an extenders package, and no final action is expected until the end of the year.


Liz Clark
Senior Director, Federal Affairs