Code Section 221

Code Section	Effective Date	Name of Act	Name of Provision	10yr Revenue Estimate ($millions)
117. 127, 142, 146-148, 221, 530	12/31/2012	The American Taxpayer Relief Act of 2012	Education incentives	-23,149
117, 127, 142, 146–148, 221, 530	12/17/2010	The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010	Education Incentives	-3,333

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Education incentives

Explanation of Provision

The Act makes permanent the EGTRRA changes to the NHSC Scholarship Program and the Armed Forces Scholarship Program, the section 127 exclusion from income and wages for employer-provided educational assistance, the student loan interest deduction, the Coverdell education savings accounts, the expansion of the small government unit exception to arbitrage rebate and the allowance of the issuance of tax-exempt private activity bonds for public school facilities. Thus, all of these tax benefits for education continue to be available after 2012.

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Education Incentives

Explanation of Provision

The provision delays the EGTRRA sunset as it applies to the NHSC Scholarship Program and the Armed Forces Scholarship Program, the section 127 exclusion from income and wages for employer-provided educational assistance, the student loan interest deduction, and Coverdell education savings accounts for two years. The provision also delays the EGTRRA sunset as it applies to the expansion of the small government unit exception to arbitrage rebate and allowing issuance of tax-exempt private activity bonds for public school facilities. Thus, all of these tax benefits for education continue to be available through 2012.

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