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Taxation & Finance

AAU joined ACE and 13 other higher education organizations in sending a letter to the House Veterans’ Affairs Committee expressing concerns regarding the Department of Veterans Affairs’ recent 85-15 policy reset and changes in the requirements for a 35% exemption.

The House Rules Committee on November 3 released updated text for H.R. 5376, the Build Back Better Act. The revised text retains many of the proposed changes contained in the bill text the Rules Committee released on October 28 that mirrored President Biden’s $1.75 trillion reconciliation bill framework.
On October 28, President Biden released his framework and fact sheet on a reconciliation package totaling $1.75 trillion over the next decade. This document is an analysis of the relevant components in the framework.
AAU joined ACE and 63 other higher education associations in sending a letter to House Speaker Nancy Pelosi (D-CA) and Senate Majority Leader Chuck Schumer (D-NY) urging them to retain robust funding in higher education and key tax provisions provided in the Build Back Better Act as it moves through negotiations.
AAU joined ACE and other higher education associations in sending a letter to House leadership urging them to repeal the taxability of Pell Grants in the FY22 reconciliation process.
AAU President Barbara R. Snyder sent a letter to Congress expressing support for certain provisions of the Build Back Better Act and urging some important modifications as the bill advances through the legislative process. The letter emphasizes the significance of a successful government-university partnership and asks Congress to improve the legislation so it benefits students and America’s research and innovation enterprise.
AAU joined a letter to Senate Finance leadership urging them to repeal the taxability of Pell grants as part of the FY22 reconciliation process.
On September 3, AAU joined nine other higher-education associations in sending a letter to House and Senate appropriators to urge them to repeal the taxability of Pell grants by incorporating the “Tax-Free Pell Grant Act” as part of their final FY2022 reconciliation agreement.
The vast majority of public and private universities and colleges are tax-exempt entities as defined by IRC Section 501(c)(3) because of their educational purposes—purposes that the federal government has long recognized as fundamental to fostering the productive and civic capacity of its citizens—and/or the fact that they are state governmental entities.
Employer-provided educational assistance benefits (Section 127) allows employers to offer their employees up to $5,250 annually in tax-free educational assistance for undergraduate or graduate-level courses.