Congress Enacts Rep. Doggett Tuition Tax Credit as part of new Recovery Act

As part of President Obama’s economic recovery legislation, I authored provisions which provide a $14 billion tax cut designed to help those seeking higher education with a tax credit for tuition and instructional materials. 346,000 Texas families, mostly the working poor, who previously received no tuition tax credit will now qualify.

The American Recovery and Reinvestment Act (H.R.1) creates the American Opportunity Tax Credit with a maximum of $2,500 rather than the current maximum of $1,800 -- thereby making college more affordable for millions of low- and moderate-income students. This tax credit is refundable up to $1000, expanding tax relief to nearly 4 million low-income students who had not had any access to higher education tax credits in the past. And for the first time, textbook expenses can be deducted from a student’s tax bill.

Click here for my address to Congress about these tuition tax credits.