Tax Extenders Included in Financial Bailout; Cell Phones Not Addressed
October 9, 2008
Last month’s financial bailout legislation included tax provisions worth more than $150 billion. The Emergency Economic Stabilization Act of 2008 (H.R. 1424), signed by President Bush on October 3, provides a one-year patch of the alternative minimum tax and $17 billion in tax incentives for investments in renewable energy. Of special interest to colleges and universities, H.R. 1424 also extends the following tax provisions for two years, through December 31, 2009:
- IRA Rollovers. The Pension Protection Act of 2006 (PPA) created a provision allowing taxpayers to make tax-free contributions from their IRA plans to qualified charitable organizations. The proposal is effective for distributions after December 31, 2007.
- Qualified Tuition Deduction. The Economic Growth and Tax Relief Reconciliation Act (EGTRRA) created an above-the-line tax deduction for qualified higher education expenses. The maximum deduction is $4,000 for taxpayers with AGI of $65,000 or less ($130,000 for joint returns) or $2,000 for taxpayers with AGI of $80,000 or less ($160,000 for joint returns).
Although colleges and universities had hoped that the tax provisions would also simplify the treatment of employer-provided cell phones, the new law did not address the issue. NACUBO will continue to push for legislative action on this issue in the next Congress.
- NACUBO Expresses Concerns with ED Proposal to Expand Federal Financial Responsibility Rules
- IRS Proposes Modifications to 1098-T Reporting
- ED Policy to Require Annual Student Aid Compliance Audits Beginning FY17
- 2016 Planning and Budgeting Forum
September 19-20, 2016
- 2016 Big Opportunities for Small Institutions
September 20-21, 2016
- 2016 Tax Forum
September 25-27, 2016
- ON-DEMAND: The CBO's Role in Diversity and Inclusion on Campus
- ON-DEMAND: The Clery Act: Strategic Planning to Mitigate Institutional Risk
- ON-DEMAND: Title IX: Key Issues Surrounding Institutional Compliance
- ON-DEMAND: NACUBO Live! Higher Education Accounting Forum
- ON-DEMAND: Responsibility Center Management: Two Different Perspectives