NAICU Washington Update

House, Senate Look to Extend Expiring Tax Provisions

February 10, 2010

The IRA charitable rollover and the tuition deduction, two very important provisions for colleges and universities, have now expired with the rest of the 2009 expiring tax provisions.  However, both the House and Senate intend on retroactively extending these provisions for one additional year.

These two items then will join a host of other important provisions from the 2001 estate tax bill and 2008 stimulus bill that are set to expire at the end of 2010.   There's the possibility of losing practically every higher education tax benefit at the end of next year -- including the IRA rollover, tuition deduction, the new $2,500 college tax credit, Sec. 127 employer-provided education assistance, improvements made to the student loan interest deduction, and increased contribution limits to Coverdell education savings accounts.

Various bills are being introduced in both the House and Senate to make these items permanent, but there is no sense of timing for their consideration -- particularly since Congress is yet to address the now-expired 2009 tax provisions.

We'll keep you apprised of developments as we move toward the end-of-2010 expiration date on these many important tax provisions.


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