The Coalition to Preserve Employer Provided Education Assistance has recently launched a letter to Congress asking for members to support a tax extenders package that includes Section 127.
Currently, Section 127 of the Internal Revenue Code allows an employee to exclude from income up to $5,250 per year in employer-provided tuition reimbursement for their continuing education. It also encourages employers to invest in their people, attract and retain talented workers, and compete more successfully in the global marketplace. Since being enacted in 1978, Sec. 127 has become such an important benefit that Congress has renewed it nine times.
Without Congressional action, Section 127, along with many other tax benefits, will expire in just a few short weeks – on December 31, 2012. The extension of all of these benefits is caught up in proposals to avert the pending fiscal cliff. Both parties agree on extending many of these tax cuts but Congressional Republicans and President Obama disagree on whether and what level of income tax breaks should apply. While Sec. 127 currently has no income limitation, our research shows that individuals who benefit from Sec. 127 earn a median income of $40,000 annually. An income limit at the current proposed amounts would likely not impact most employees who rely on the tuition rebate.
Corporate Voices continues to work with businesses, policy makers, and non-governmental organizations to help create a better understanding about the public and private sector resources that increase job opportunities, improve financial stability, build assets and enhance productivity. As a member of the Coalition to Preserve Employer Provided Education Assistance, Corporate Voices will continue to advocate for the inclusion of Section 127 in any final negotiation.
To write your member of Congress about Section 127, visit: http://capwiz.com/cpepea/home and let your voice be heard on this important issue. In the coming weeks we will provide updates on how Sec. 127 fares in any final deal, if a deal is reached, later this month.