Sen. Marco Rubio (R-Fla.) and Rep. Aaron Schock (R-Ill.) recently introduced a bill that aims to update and consolidate education tax incentives to help millions of Americans pursue higher education while saving taxpayers’ money.
The Higher Education & Skills Obtainment Act would simplify the tax code as it pertains to the nation’s higher education tax incentives. Rubio and Schock said the legislation would save nearly $4 billion annually by eliminating credits that currently go to taxpayers who are not students or did not attend an eligible institution. It also eliminates students who attended less than half-time, those who have exceeded four-year credit limitations and those who are non-resident aliens.
“One of the most complicated sections of our tax code is the numerous temporary tax incentives offered for higher education, which often do little more than serve as justification for out-of-control tuition increases,” said Schock. “This legislation will provide opportunities for American’s seeking skills training as an alternative to attending a college or university. Simplifying our current 70,000 page tax code while reducing the tax burden placed on all taxpayers is a priority for me and my colleagues on the Ways and Means Committee.”
The proposed legislation includes additional cost-saving measures, including the elimination of direct credit for graduate school attendance that is often cited as a contributor to high education costs. The legislation would also require eligible expenses to reflect what was actually received from education institutions, not what was billed.