Tax and Finance

The Issue

​​​​​​​​​​​​​​​​​While the federal tax code is no substitute for federal student aid programs or the financial aid colleges and universities provide, over the past two decades the federal tax code has played an increasingly significant role in helping low- and middle-income students and families finance higher education. The tax code also contains a number of provisions that help support higher education institutions in their educational and research missions. Finally, there are tax provisions that apply to colleges and universities as tax-exempt entities. ACE focuses our advocacy on legislative and regulatory efforts concerning this array of tax provisions important to students, families, and institutions of higher education.

Our Work
Make Higher Education Institutions Eligible for FMLA Tax Credit
Make Higher Education Institutions Eligible for FMLA Tax Credit
Letter to Sens. Mitch McConnell and Chuck Schumer urging them to colleges and universities eligible for the paid sick and family leave refundable tax credit created in the Families First Coronavirus Response Act.
Letter Endorsing the American Opportunity Student Tax Relief Act
Letter Endorsing the American Opportunity Student Tax Relief Act
Letter signed by ACE and 15 other associations to Representative Lloyd Doggett in support of the American Opportunity Student Tax Relief Act of 2020.
Letter to Congress on the Taxability of Emergency Student Financial Aid Grants
Letter to Congress on the Taxability of Emergency Student Financial Aid Grants
Letter to House Ways and Means and Senate Finance committees requesting that the emergency student financial aid grants authorized by the CARES Act are not subject to taxation.
Higher Education Community Requests $46.6 Billion for Students and Institutions in Fourth Supplemental Package, Proposes Tax Changes
Higher Education Community Requests $46.6 Billion for Students and Institutions in Fourth Supplemental Package, Proposes Tax Changes
ACE and other higher education organizations are requesting that Congress include $46.6 billion in emergency aid for students and institutions in the next COVID-19 supplemental package to at least partially mitigate the damage done by this pandemic.
Letter to Congress on Higher Education Tax Priorities During the COVID-19 Pandemic
Letter to Congress on Higher Education Tax Priorities During the COVID-19 Pandemic
Letter to the House Ways and Means and Senate Finance committees outlining the higher education tax proposals needed to support students and institutions during the COVID-19 pandemic.
Summary of the Higher Education Provisions in the CARES Act
Summary of the Higher Education Provisions in the CARES Act
Summary of the higher education provisions in the Coronavirus Aid, Relief, and Economic Security Act, which provides over $2 trillion in emergency relief to address the economic downturn resulting from the pandemic.
Letter in Support of Charitable Giving Amendment to the CARES Act
Letter in Support of Charitable Giving Amendment to the CARES Act
Letter to Sen. James Lankford in support of his amendment to the in Coronavirus Aid, Relief, and Economic Security (CARES) Act that would create an above-the-line deduction for charitable giving for taxpayers not itemizing their deductions
Letter to House and Senate on End-of-Year Tax Issues
Letter to House and Senate on End-of-Year Tax Issues
Letter to the House Committee on Ways and Means and the Senate Committee on Finance on fixing the kiddie scholarship tax, extending the tuition deduction, and repealing the parking tax and endowment tax.
Letter to Senate Leaders on Kiddie Tax Scholarship Fix
Letter to Senate Leaders on Kiddie Tax Scholarship Fix
Letter urging the Senate to swiftly correct a mistake made in the Tax Cuts and Jobs Act that impacts scholarship students.
Letter to House on Tuition Deduction and Parking Tax
Letter to House on Tuition Deduction and Parking Tax
Letter to the House Ways and Means Committee in support of bills to extend the tuition tax deduction and repeal the UBIT qualified transportation tax.
Letter on Tax Relief for Student Success Act
Letter on Tax Relief for Student Success Act
Letter from ACE President Ted Mitchell to Sens. Tim Scott and Maggie Hassan thanking them for introducing S. 1667.
Letter to House on Kiddie Tax Fix Provision in SECURE Act
Letter to House on Kiddie Tax Fix Provision in SECURE Act
Letter to the House on the Kiddie Tax Fix Provision in the SECURE Act.
Letter to the House Ways and Means and Senate Finance Committees Regarding the Taxability of Scholarships and Grants Under the Tax Cuts and Jobs Act
Letter to the House Ways and Means and Senate Finance Committees Regarding the Taxability of Scholarships and Grants Under the Tax Cuts and Jobs Act
ACE President Ted Mitchell sent a letter May 9 to members of the House Ways and Means and Senate Finance Committees, urging them to swiftly correct a mistake made in the Tax Cuts and Jobs Act.
ACE President Ted Mitchell on Senate Stimulus Bill’s Impact on Students and Institutions
ACE President Ted Mitchell on Senate Stimulus Bill’s Impact on Students and Institutions
While this legislation is an improvement from where the Senate started, the amount of money it provides to students and higher education institutions remains woefully inadequate.
Senate Likely to Vote on Stimulus Package Later Today; Support for Students and Institutions Still Being Negotiated
Senate Likely to Vote on Stimulus Package Later Today; Support for Students and Institutions Still Being Negotiated
Senate Minority Leader Chuck Schumer (D-NY) and Treasury Secretary Steve Mnuchin said last night that they were nearing a deal on a $2 trillion economic aid package to help Americans, U.S. businesses, and specific groups survive the coronavirus pandemic.
Congress Fixes “Kiddie Tax” Mistake, Approves Other Higher Education Tax Provisions
Congress Fixes “Kiddie Tax” Mistake, Approves Other Higher Education Tax Provisions
Congress this week approved several tax provisions of importance to higher education, including a fix to the so-called “kiddie tax” mistake made in the drafting of the 2017 Tax Cuts and Jobs Act (TCJA) that has inadvertently caused harm to many low- and m
Statement by ACE President Ted Mitchell on Fixing the "Kiddie Tax" Mistake
Statement by ACE President Ted Mitchell on Fixing the "Kiddie Tax" Mistake
Statement released on December 19 supporting the recent fix to the kiddie tax mistake.
Treasury Department Releases Endowment Tax Draft Rules
Treasury Department Releases Endowment Tax Draft Rules
The Treasury Department has released proposed rules for the tax on the endowments of private colleges and universities included in the 2017 tax overhaul, the Tax Cuts and Jobs Act.
ACE, Others Urge Fix to Increased "Kiddie Tax" Impacting Low- and Middle-income Students
ACE, Others Urge Fix to Increased "Kiddie Tax" Impacting Low- and Middle-income Students
ACE and others in the higher education community are urging Congress to correct a mistake made in the drafting of the 2017 Tax Cuts and Jobs Act.
ACE, Other Groups Urge Congress to Extend Tuition Deduction, Repeal Parking Tax
ACE, Other Groups Urge Congress to Extend Tuition Deduction, Repeal Parking Tax
ACE and five other higher education associations have written to House Ways and Means Committee leaders urging support for extending the tuition deduction and repealing the so-called parking tax in two bills scheduled for committee markup.