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Higher Tax Break for Employer Education Assistance and Training Tools.

This law temporarily raises the tax-free limit for employer-provided educational assistance from $5,250 to $12,000 per year. It also significantly broadens what counts as covered expenses, including required tools, computer equipment, software, and internet access needed for training or professional licensing. This change allows employees to receive greater financial support for career development without increasing their taxable income.
Key points
The tax-free limit for employer educational assistance is temporarily increased to $12,000 annually (for 2024 and 2025 tax years).
The definition of educational assistance now includes tools, construction equipment, computers, software, internet access, and licensing fees.
Employees can keep most of the education-related tools and technology provided by the employer after training completion without incurring a tax liability.
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Additional Information
Print number: 118_HR_6401
Sponsor: Rep. Davis, Danny K. [D-IL-7]
Process start date: 2023-11-14
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Summarized by: gemini-3-pro-preview
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Upskilling and Retraining Assistance Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_6401.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-11-14.

What are the main provisions?

Key points include:

  • The tax-free limit for employer educational assistance is temporarily increased to $12,000 annually (for 2024 and 2025 tax years).
  • The definition of educational assistance now includes tools, construction equipment, computers, software, internet access, and licensing fees.
  • Employees can keep most of the education-related tools and technology provided by the employer after training completion without incurring a tax liability.
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 Rep. Davis, Danny K. [D-IL-7].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

CATEGORIES

Taxes Labor Education