In addition to funding for workforce development programs, the federal government uses tax credits and deductions to offset costs for training incurred by workers and / or their employers. Currently five provisions of the Internal Revenue Code offer tax assistance to individuals and businesses incurring expenses for postsecondary education: the American Opportunity Tax Credit (which currently replaces the Hope Tax Credit through tax year 2012), the Lifetime Learning Credit (LLC), the Tuition and Fees Deduction, the Student Loan Interest Deduction, and Section 127 Employer-Provided Assistance.
National Skills Coalition advocates for policies such as: allowing students attending school less than half-time or attaining for longer than four years to claim these tax credits; making these credits refundable so that workers earning low wages may claim them; and, expanding allowable expenses under these credits.
This page contains overview materials on these tax policies, as well as analysis developed by National Skills Coaltion.
National Skills Coalition Platform and Overview
Higher Education Tax Benefits | Training Policy in Brief, 2012