The Coalition to Preserve Employer Provided Education Assistance is a broad-based group of organizations, companies and associations dedicated to ensuring the tax protection of employees who wish to take advantage of an employer’s tuition assistance program. Providing tax-free educational assistance is an important tool employers use to attract the best available employees and build a skilled workforce. Additionally, this benefit enables employees to continue their education, advance within their positions and obtain new knowledge to ensure their competitiveness in the workplace.
An employer's tuition assistance program is governed under Section 127 of the Internal Revenue Code which allows an employee to exclude from income up to $5,250 per year in educational assistance at the undergraduate and graduate level regardless of whether the education is job-related. Section 127 is set to expire on December 31, 2012. The Coalition supports H.R. 4137, introduced by Representatives Sam Johnson (R-TX) and Richard Neal (D-MA) that would make Section 127 a permanent provision in the U.S. Tax Code. The Coalition encourages the 112th Congress to extend or make permanent employer provided education assistance.