If Congress fails to act, $2,500 American Opportunity Tax Credit will expire at end of year
Washington, DC - Rep. Bruce Braley (IA-01) today urged House leaders of both parties to begin working together now to pass legislation to stop the looming expiration of a popular $2,500 college tax cut. Unless Congress Acts, the American Opportunity Tax Credit - which provides a partially refundable tax credit of up to $2,500 to offset the cost of tuition for college - will expire at the end of 2012.
Last month, Braley introduced the College Tax Cut Extension Act to extend the American Opportunity Tax Credit for four more years.
"Iowa college graduates have the 3rd highest student debt load in the nation," Braley said. "Piling more costs on Iowa students by letting this tax cut expire puts them even further behind at graduation. Worse, for the average Iowa community college student, letting this tax cut expire would be equivalent to a nearly 15 percent increase in tuition.
"Our colleges, universities, and community colleges are avenues of economic opportunity, and we need to keep higher education affordable for every person who wants to attend. That's why I'm urging House leaders of both parties to begin working now to extend this college tax cut instead of letting partisan politics get in the way of doing the right thing."
Braley made the request in a letter to House Speaker John Boehner and Minority Leader Nancy Pelosi, which can be read below and downloaded at the following link: http://go.usa.gov/Ufl
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February 29, 2012
The Honorable John Boehner
Speaker
U.S. House of Representatives
H-232, U.S. Capitol
Washington, DC 20515
The Honorable Nancy Pelosi
Minority Leader
U.S. House of Representatives
H-204, U.S. Capitol
Washington, DC 20515
Dear Speaker Boehner and Minority Leader Pelosi:
As you may know, the American Opportunity Tax Credit is scheduled to expire at the end of the year. I've introduced the College Tax Cut Extension Act which would extend this tax credit for four more years. Please work together to pass my legislation to extend this important tax credit.
This tax credit provides up to $2,500 to undergraduate college students for tuition as well as coursework materials including books. It is no secret that college tuition continues to drastically increase. In Iowa, tuition costs have increased by 82.9 percent since 2000 while median household income has decreased by 6.3 percent. Iowa students are also graduating with some of the highest debt in the country. Iowa students graduate with the 3rd highest student debt loan of any state in the United States. These alarming statistics shows us how important it is to extend this tax credit.
As college tuition continues to drastically rise, students cannot afford thousands of more dollars in bills because Congress failed to act. After witnessing the debacle that occurred over the payroll tax extension, I would hate to see a similar scenario occur with this issue. Please pass my College Tax Cut Extension Act extending the American Opportunity Tax Credit for four more years. I stand ready to work in any way possible to make sure we keep student loan interest rates at their current level.
Sincerely,
Bruce L. Braley
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