American Opportunity Tax Credit: The Details
The American Opportunity Tax Credit, spearheaded by Pennsylvania Congressman Chaka Fattah, is part of the new government stimulus package. It gives individuals making less than $80,000 a year a $2,500 tax credit to use on higher education costs. The bill itself will cost the country an estimated $10.3 billion.
Applicants can use the tax credit in exchange for 100 hours of community service. It is partially refundable. As part of the bill, the Department of the Treasury also has to conduct a feasibility study on the community service requirement vis a vis higher education.