US Senator Todd Young (R-IN) recently proposed the bipartisan Skill and Retraining Assistance Act to increase the tax-free educational benefits that employees in human resource development programs can receive from their employers.
“As we emerge from the pandemic, Hoosier companies and workers must collect the pieces,” said Sen. Young. “The non-partisan Qualification and Retraining Assistance Act would temporarily increase this important educational assistance tax provision to invest in our post-pandemic workforce development needs and equip workers with the right skills for high-demand jobs while our public health and economic recovery continues. “
Sen. Young assisted S. in 1802 with U.S. Senator Maggie Hassan (D-NH) to make two changes to Section 127 of the Tax Code to modernize and expand the use of educational support programs that employers can offer their workers to a legislative summary provided by the legislature.
The bill would urgently increase the tax exclusion from $ 5,250 to $ 12,000 over the next two years. This would adjust the exclusion to account for inflation over the past three decades and help employers meet the needs of their workers as they grapple with the impact COVID-19 has on their business, the executive summary said.
In addition, the bill would expand the tax exclusion to cover the cost of education-related tools and technology, including hand tools, construction equipment, computers and software, and other items related to the cost of a worker completing their education program.
The legislation is supported by a wide variety of organizations and companies, including the American Association of Community Colleges, the National Association of College and University Business Officers, the American Council on Education, the American Hotel and Lodging Association, and the Coalition for the Preservation of Employer-Provided Educational Aid , the National Electrical Contractors Association, Starbucks Coffee Co., and Walmart, among others.