The National Association of College and University Business Officers applauds the work of Congress to pass a budget bill that repeals detrimental taxes and makes other improvements for colleges and universities and the students they serve:
- Repeal of the parking tax: This tax was levied under the 2017 Tax Cuts and Jobs Act on the parking and transportation benefits all nonprofit organizations, including colleges and universities, offer to their employees.
- Repeal of the “kiddie” tax: This glitch in the 2017 Tax Cuts and Jobs Act caused certain students who received scholarships to be taxed at unexpectedly high rates.
- Retroactive extension of 179D: This credit, which expired in 2017, can assist public colleges in making energy efficient enhancements to buildings and undertaking energy efficient new construction projects.
- Repeal of the so-called “Cadillac” tax: This excise tax, enacted under the Affordable Care Act, was expected to result in significant costs for employers related to the health insurance plans they offer to employees.
- Retroactive reinstatement and extension of the above-the-line tuition deduction: The bill reinstates a deduction for eligible taxpayers of up to $4,000 for higher education expenses.
“This is a legislative victory for students, families, colleges, and universities,” said President and CEO Susan Whealler Johnston. “NACUBO and our member institutions have advocated tirelessly for a repeal of the parking tax—an unreasonable levy that only made college more expensive. We are pleased to see Congress and the president rectify this and other issues and give colleges and universities the ability to put the funds toward their missions.”