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Temporary tax break increase for employee training and essential work tools.

This law temporarily raises the amount of employer-provided educational assistance that is tax-free for employees, increasing it from $5,250 to $12,000 for the 2024 and 2025 tax years. It also expands the definition of covered assistance to include essential tools, computer equipment, software, and internet access required for vocational training and professional certifications. This makes it easier and cheaper for workers to acquire new skills and maintain necessary professional licenses.
Key points
Employers can offer employees up to $12,000 annually for training and education without the employee paying income tax on that amount (effective for 2024–2025).
These funds can cover hand tools, construction equipment, computers, software, and internet access required for a course or professional licensing.
Employees can keep the purchased tools and equipment after training completion without the value being counted as taxable income.
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Expired
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Additional Information
Print number: 118_S_3296
Sponsor: Sen. Hassan, Margaret Wood [D-NH]
Process start date: 2023-11-14
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Summarized by: gemini-flash-latest
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_S_3296.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-11-14.

What are the main provisions?

Key points include:

  • Employers can offer employees up to $12,000 annually for training and education without the employee paying income tax on that amount (effective for 2024–2025).
  • These funds can cover hand tools, construction equipment, computers, software, and internet access required for a course or professional licensing.
  • Employees can keep the purchased tools and equipment after training completion without the value being counted as taxable income.
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. Hassan, Margaret Wood [D-NH].

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 2025-12-30.

CATEGORIES

Taxes Labor Education