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Enhanced education tax credit: full refundability and higher income limits.

This act enhances the American Opportunity Tax Credit, making it fully refundable. This means students and their families can receive money back even if they don't owe enough taxes to fully utilize the credit. Income limits have also been raised, allowing more people to benefit from this educational assistance.
Key points
The American Opportunity Tax Credit for education becomes fully refundable, meaning you can receive money back even if you don't owe enough tax.
The maximum credit per student is now $5,000, covering 100% of qualified expenses.
Income thresholds for individuals and families to claim the credit have been increased, expanding eligibility.
Changes to the drug felony exclusion for the credit, limiting it to serious federal drug-related offenses with a minimum 15-year imprisonment term.
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Additional Information
Print number: 117_S_2465
Sponsor: Sen. Menendez, Robert [D-NJ]
Process start date: 2021-07-22
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Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

American Opportunity Tax Credit Enhancement Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_2465.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-07-22.

What are the main provisions?

Key points include:

  • The American Opportunity Tax Credit for education becomes fully refundable, meaning you can receive money back even if you don't owe enough tax.
  • The maximum credit per student is now $5,000, covering 100% of qualified expenses.
  • Income thresholds for individuals and families to claim the credit have been increased, expanding eligibility.
  • Changes to the drug felony exclusion for the credit, limiting it to serious federal drug-related offenses with a minimum 15-year imprisonment term.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Menendez, Robert [D-NJ].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-01-02.

CATEGORIES

Taxes Education