[Federal Register Volume 75, Number 60 (Tuesday, March 30, 2010)]
[Notices]
[Page 15772]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-7021]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY


Feasibility of Including a Volunteer Requirement for Receipt of 
Federal Education Tax Credits

AGENCY: Department of the Treasury, Departmental Offices.

ACTION: Notice and request for comments.

-----------------------------------------------------------------------

SUMMARY: The Department of the Treasury invites the general public to 
comment on the feasibility of instituting a community service 
requirement as a condition for receiving a tax credit for tuition and 
related expenses.

DATES: Written comments should be received on or before April 29, 2010, 
to be assured of consideration.

FOR FURTHER INFORMATION CONTACT: Deena Ackerman, Office of Tax 
Analysis, at (202) 622-7504.

SUPPLEMENTARY INFORMATION: Section 1004(f) of the American Recovery and 
Reinvestment Act of 2009 (Pub. L. 111-5) (ARRA) charges the Department 
of the Treasury (Treasury) and the Department of Education (Education) 
with studying the feasibility of including a community service 
requirement as a condition for receiving a tax credit for tuition and 
related expenses. Treasury and Education are instructed to report on 
the study to Congress.
    Under current law, individual taxpayers with education expenses may 
be eligible for one of several education credits described in section 
25A of the Internal Revenue Code. Taxpayers may claim a lifetime 
learning credit for 20 percent of up to $10,000 of expenses for tuition 
and required fees per taxpayer for a maximum credit of $2,000. The 
lifetime learning credit is non-refundable and subject to income 
limits. Through 2010, taxpayers may claim an American Opportunity Tax 
Credit for 100 percent of the first $2,000 of tuition and expenses, and 
25 percent of the next $2,000 of tuition and expenses per student for 
eligible students who are attending postsecondary education at least 
half time. Up to 40 percent of the eligible credit amount is refundable 
and the credit is subject to income limits. The American Opportunity 
Tax Credit expires December 31, 2010, after which taxpayers may be 
eligible for the non-refundable Hope scholarship credit for the first 
two years of post-secondary education, as under pre-ARRA law. Taxpayers 
may claim a Hope scholarship credit for 100 percent of the first $1,200 
and 50 percent of the next $1,200 of tuition and required fees per 
student attending at least half time. The credit is non-refundable and 
subject to income limits. A taxpayer may claim only one credit per 
eligible student.
    Treasury is soliciting comments to assist in the exploration of the 
feasibility of implementing a community service requirement as a 
condition for receiving an education credit. Treasury is particularly 
interested in comments on the specific questions set forth below, or on 
other issues related to the feasibility of instituting a community 
service requirement.
    1. Should students be required to fulfill a community service 
requirement for receipt of an education credit? Why or why not?
    2. If there were a community service requirement, should the 
institutions providing post-secondary education and training 
(hereafter, colleges) be required to administer it? Please elaborate.
    3. If there were a community service requirement, and colleges were 
required to administer the requirement, what would be the main 
operational and administrative challenges the schools would face in 
implementing this requirement? Topics to address include, but are not 
limited to:
    a. How would colleges ensure that there are meaningful community 
service opportunities available for all students?
    b. How would colleges ensure that eligible students are identified 
and able to claim the credit while students who failed to fulfill the 
community service requirement are not able to claim the credit?
    c. How could existing infrastructure on campuses help or hinder the 
implementation of this requirement?
    4. If administration of this credit involved additional reporting, 
perhaps on a revised IRS Form 1098-T or were tied to the campus-based 
work study program, how would institutions be affected?
    5. What challenges would students face in fulfilling this community 
service requirement if it were adopted?

When submitting comments, please include your name, affiliation, 
address, e-mail address, and telephone number(s) in your comment. All 
statements received, including attachments and other supporting 
materials, are part of the public record and subject to public 
disclosure. You should submit only information that you wish to make 
available publicly.

ADDRESSES: Please submit comments electronically through 
[email protected]. Alternatively, comments may be mailed 
to: Volunteer Requirement Comments, Department of the Treasury, 1500 
Pennsylvania Avenue, NW., Room 4036A, Washington, DC 20220.

    Dated: March 24, 2010.
Mark Mazur,
Deputy Assistant Secretary (Tax Analysis).
[FR Doc. 2010-7021 Filed 3-29-10; 8:45 am]
BILLING CODE 4810-25-P