arrow_back Back to App

Higher tax exclusion for employee educational assistance and professional tools.

This Act increases the amount of employer-provided educational assistance that employees can receive tax-free, setting the annual limit at $12,000 for education below the graduate level, with future adjustments for inflation. Crucially, it expands the definition of educational assistance to include essential education-related tools and technology, such as computers, software, internet access, and trade-specific equipment. This change supports workers in pursuing professional development, obtaining certifications, and advancing their careers.
Key points
Tax-Free Educational Assistance Increase: The annual exclusion limit for employer-provided educational assistance (below graduate level) is set at $12,000 per individual.
Inflation Adjustment: The $12,000 limit will be adjusted annually for inflation for any calendar year after 2023.
Expanded Coverage for Tools and Technology: The exclusion now covers 'education-related tools and technology,' including computers, software, internet services, hand tools, and construction equipment required for courses, certifications, or professional advancement.
Financial Benefit for Workers: Employees will not have to pay income tax on up to $12,000 of assistance (adjusted for inflation).
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 118_HR_6402
Sponsor: Rep. Feenstra, Randy [R-IA-4]
Process start date: 2023-11-14
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-3-pro-preview
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Upward Mobility Enhancement Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_6402.

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:

  • Tax-Free Educational Assistance Increase: The annual exclusion limit for employer-provided educational assistance (below graduate level) is set at $12,000 per individual.
  • Inflation Adjustment: The $12,000 limit will be adjusted annually for inflation for any calendar year after 2023.
  • Expanded Coverage for Tools and Technology: The exclusion now covers 'education-related tools and technology,' including computers, software, internet services, hand tools, and construction equipment required for courses, certifications, or professional advancement.
  • Financial Benefit for Workers: Employees will not have to pay income tax on up to $12,000 of assistance (adjusted for inflation).
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. Feenstra, Randy [R-IA-4].

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 Education Labor