A permanent extension of Section 127 of the Internal Revenue Code was passed on January 1st, 2013. The law allows employees to exclude from taxable income up to $5,250 per year in employer-provided tuition assistance for undergraduate or graduate level courses, regardless of whether or not the courses are relevant to their current job. HR professionals have been working for the permanency of this benefit, that is a win-win for employees and employers, for over a decade.
The bill, known as H.R. 8 also reinstates and extends the Work Opportunity Tax Credit for employers through December 2013.