“The tax extenders bill that the House and Senate approved makes permanent several provisions that help make college more affordable, incentivize charitable donations to universities, and encourage research and development to help develop products based off cutting-edge research conducted at universities.
“By making permanent the American Opportunity Tax Credit, Congress is ensuring low and middle-income families will be able to receive an annual tax credit of up to $2,500 per college student. This is a significant tax benefit that helps make college more affordable for many American households. The legislation also includes an extension through 2016 of the above-the-line tax deduction for qualified tuition and expenses. By investing as a nation in college accessibility, we are helping to ensure more of our young people can go to college, earn a degree, and contribute to our economy and society.
“The tax extenders bill also facilitates greater philanthropic contributions toward our nation’s universities by making the IRA charitable rollover tax provision permanent. This will encourage greater charitable giving to universities to support academic and research programs among other activities. The annual uncertainty around whether this important provision would be extended made it challenging for universities to work with donors who wanted to support the academic and research missions of institutions.
“In making permanent the research and development tax credit, the bill also provides certainty to U.S. industries that seek to conduct applied research and development activities, often building upon the scientific knowledge gained through the basic research performed at our nation’s universities. This change is part of the “Innovation: An American Imperative” call to action that APLU and more than 325 leading organizations from American industry, higher education, science and engineering organizations promoted earlier this year, urging Congress to enact policies that ensure the U.S. remains the global innovation leader.”