AmeriCorps Tax Relief Bill Reintroduced in House and Senate

Senators Michael Bennet (D-CO) and Bill Cassidy (R-LA) and Representatives John Larson (D-CT) and Don Bacon (R-NE) reintroduced the Segal AmeriCorps Education Award Tax Relief Act.  The bipartisan bill to exclude the Segal AmeriCorps Education Award from federal taxation was introduced in the House and Senate.

Currently, under federal law, the Segal AmeriCorps Education Award is treated differently than other education awards and scholarships designed with a similar purpose. The AmeriCorps Education Award is considered taxable income and recipients are prohibited from withholding a portion of the award to cover any resulting taxes. As a result, the tax creates a financial burden for AmeriCorps alumni, discouraging some from using their award and forcing others to delay their education plans.

The Segal AmeriCorps Education Award Tax Relief Act would exclude the AmeriCorps Education Award as gross income under the federal tax code, ensuring the earned benefit remains a compelling incentive to serve and a tool for making higher education more affordable for AmeriCorps alumni.

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