§ 127. Educational assistance programs

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1978

   Pub. L. 95–600 title I § 164(a) · 92 Stat. 2763

   Enacted · 26 U.S.C. § 127

   Added Pub. L. 95–600, title I, § 164(a), Nov. 6, 1978, 92 Stat. 2811

   Source evidence

   Code source credit
   Added Pub. L. 95–600, title I, § 164(a), Nov. 6, 1978, 92 Stat. 2811

   Enacted provision · exact public law section
   (a) In General.— Part III of subchapter B of chapter 1 (relating to items specifically excluded from gross income) is amended by redesignating section 127 as 128 and by inserting after section 126 the 26 USC 128. following new section: “SEC. 127. EDUCATIONAL ASSISTANCE PROGRAMS. “(a) General Rule.— Gross income of an employee does not include amounts paid or expenses incurred by the employer for educational assistance to the employee if the assistance is furnished pursuant to a program which is described in subsection (b). “(b) Educational Assistance Program.— “(1) In general.— For purposes of this section an educational assistance program is a separate written plan of an employer for the exclusive benefit of his employees to provide such employees with educational assistance. The program must meet the requirements of paragraphs (2) through (6) of this subsection. “(2) Eligibility.— The program shall benefit employees who qualify under a classification set up by the employer and found by the Secretary not to be discriminatory in favor of employees who are officers, owners, or highly compensated, or their dependents. For purposes of this paragraph, there shall be excluded from consideration employees not included in the program who are included in a unit of employees covered by an agreement which the Secretary of Labor finds to be a collective bargaining agreement between employee representatives and one or more employers, if there is evidence that educational assistance benefits were the subject of good faith bargaining between such employee representatives and such employer or employers. “(3) Principal shareholders or owners.— Not more than 5 percent of the amounts paid or incurred by the employer for educational assistance during the year may be provided for the class of individuals who are shareholders or owners (or their spouses or dependents), each of whom (on any day of the year) owns more than 5 percent of the stock or of the capital or profits interest in the employer. . “(4) Other benefits as an alternative.— A program must not provide eligible employees with a choice between educational assistance and other remuneration includible in gross income. For purposes of this section, the business practices of the employer (as well as the written program) will be taken into account. “(5) No funding required.— A program referred to in paragraph (1) is not required to be funded. “(6) Notification of employees.— Reasonable notification of the availability and terms of the program must be provided to eligible employees. “(c) Definitions; Special Rules.— For purposes of this section— “(1) Educational assistance.— The term ‘educational assistance’ means— “(A) the payment, by an employer, of expenses incurred by or on behalf of an employee for education of the employee (including, but not limited to, tuition, fees, and similar payments, books, supplies, and equipment), and “(B) the provision, by an employer, of courses of instruction for such employee (including books, supplies, and equipment), but does not include payment for, or the provision of, tools or supplies which may be retained by the employee after completion of a course of instruction, or meals, lodging, or transportation. The term ‘educational assistance’ also does not include any payment for, or the provision of any benefits with respect to, any course or other education involving sports, games, or hobbies. “(2) Employee.— The term ‘employee’ includes, for any year, an individual who is an employee within the meaning of section 401(c)(1) relating to self-employed individuals). “(3) Employer.— An individual who owns the entire interest in an unincorporated trade or business shall be treated as his own employer. A partnership shall be treated as the employer of each partner who is an employee within the meaning of paragraph (2). “(4) Attribution rules.— “(A) Ownership of stock.— Ownership of stock in a corporation shall be determined in accordance with the rules provided under subsections (d) and (e) of section 1563 (without 26 USC 1563. regard to section 1563(e)(3)(C)). “(B) Interest in unincorporated trade or business.— The interest of an employee in a trade or business which is not incorporated shall be determined in accordance with regulations prescribed by the Secretary, which shall be based on principles similar to the principles which apply in the case of subparagraph (A). “(5) Certain tests not applicable.— An educational assistance program shall not be held or considered to fail to meet any requirements of subsection (b) merely because— “(A) of utilization rates for the different types of educational assistance made available under the program; or “(B) successful completion, or attaining a particular course grade, is required for or considered in determining reimbursement under the program. “(6) Relationship to current law.— This section shall not be construed to affect the deduction or inclusion in income of amounts (not within the exclusion under this section) which are paid or incurred, or received as reimbursement, for educational expenses under section 117,162 or 212. 26 USC 117, 212. “(7) Disallowance of excluded amounts as credit or deduction.— No deduction or credit shall be allowed under any other section of this chapter for any amount excluded from income by reason of this section. “(d) Termination.— This section shall not apply to taxable years beginning after December 31, 1983.”

2. 1984

   Pub. L. 98–611 § 1(b) · 98 Stat. 3176

   1. Amended · 26 U.S.C. § 127(a)

      Pub. L. 98–611, § 1(b), amended subsec. generally

   2. Substituted · 26 U.S.C. § 127(a)

      Pub. L. 98–611, § 1(b), substituting “Exclusion from gross income” for “General rule” in heading

   3. Amended · 26 U.S.C. § 127(a)

      Pub. L. 98–611, § 1(b), designating existing provision as par. “(1) In general”

   4. Added · 26 U.S.C. § 127(a)

      Pub. L. 98–611, § 1(b), adding par. (2)

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 98–611, § 1(b), amended subsec. generally, substituting “Exclusion from gross income” for “General rule” in heading, designating existing provision as par. “(1) In general” and adding par. (2).

   Enacted provision · exact public law section
   (b) Annual Exclusion Limited to $5,000.— Subsection (a) of section 127 of such Code is amended to read as follows: “(a) Exclusion From Gross Income.— “(1) In general.— Gross income of an employee does not include amounts paid or expenses incurred by the employer for educational assistance to the employee if the assistance is furnished pursuant to a program which is described in subsection (b). “(2) $5,000 maximum exclusion.— If, but for this paragraph, this section would exclude from gross income more than $5,000 of educational assistance furnished to an individual during a calendar year, this section shall apply only to the first $5,000 of such assistance so furnished.”

3. 1984

   Pub. L. 98–611 § 1(e) · 98 Stat. 3176

   Substituted · 26 U.S.C. § 127(c)(7)

   Pub. L. 98–611, § 1(e), substituted “allowed to the employee” for “allowed”

   Source evidence

   Code amendment note
   Subsec. (c)(7). Pub. L. 98–611, § 1(e), substituted “allowed to the employee” for “allowed”.

   Enacted provision · exact public law section
   (e) Clarification of Disallowance of Credit or Deduction.— Paragraph (7) of section 127(c) of such Code (relating to definitions; special rules) is amended by inserting “to the employee” after “allowed”.

4. 1984

   Pub. L. 98–611 § 1(c) · 98 Stat. 3176

   Added · 26 U.S.C. § 127(c)(8)

   Pub. L. 98–611, § 1(c), added par. (8)

   Source evidence

   Code amendment note
   Subsec. (c)(8). Pub. L. 98–611, § 1(c), added par. (8).

   Enacted provision · exact public law section
   (c) Special Rule for Certain Graduate Students.— Subsection (c) of section 127 of such Code is amended by adding at the end thereof the following paragraph: “(8) Coordination with section 117 (d).— In the case of the education of an individual who is a graduate student at an educational organization described in section 170(b)(1)(A)(ii) and who is engaged in teaching or research activities for such Ante, p. 887. organization, section 117(d)(2) shall be applied as if it did not contain the phrase ‘(below the graduate level)’.”

5. 1984

   Pub. L. 98–611 § 1(a) · 98 Stat. 3176

   Substituted · 26 U.S.C. § 127(d)

   Pub. L. 98–611, § 1(a), substituted “December 31, 1985” for “December 31, 1983”

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 98–611, § 1(a), substituted “December 31, 1985” for “December 31, 1983”.

   Enacted provision · exact public law section
   (a) 2–Year Extension of Exclusion From Gross Income.— Subsection (d) of section 127 of the Internal Revenue Code of 1954 (relating to educational assistance programs) is amended by striking out “December 31, 1983” and inserting in lieu thereof “December 31, 1985”.

6. 1984

   Pub. L. 98–611 § 1(d)(3)(B) · 98 Stat. 3176

   Added · 26 U.S.C. § 127(e)

   Pub. L. 98–611, § 1(d)(3)(B), added subsec. (e)

   Source evidence

   Code amendment note
   Subsec. (e). Pub. L. 98–611, § 1(d)(3)(B), added subsec. (e).

   Enacted provision · exact public law section
   (B) Section 127 of such Code is amended by adding at the 26 USC 127. end thereof the following new subsection: “(e) Cross Reference.— “For reporting and recordkeeping requirements, see section 6039D.”

7. 1986

   Tax Reform Act of 1986

   Pub. L. 99–514 § 1162(a)(2) · 100 Stat. 2085

   Substituted · 26 U.S.C. § 127(a)(2)

   Pub. L. 99–514, § 1162(a)(2), substituted “$5,250” for “$5,000” in heading and twice in text

   Source evidence

   Code amendment note
   Subsec. (a)(2). Pub. L. 99–514, § 1162(a)(2), substituted “$5,250” for “$5,000” in heading and twice in text.

   Enacted provision · exact public law section
   (2) Increase in amount.— Paragraph (2) of section 127(a) is amended by striking out “$5,000” each place it appears in the text and the heading thereof and inserting in lieu thereof “$5,250”.

8. 1986

   Tax Reform Act of 1986

   Pub. L. 99–514 § 1151(c)(4)(A) · 100 Stat. 2085

   1. Added · 26 U.S.C. § 127(b)(1)

      Pub. L. 99–514, § 1151(c)(4)(A), added par. (1)

   2. Struck · 26 U.S.C. § 127(b)(1)

      Pub. L. 99–514, § 1151(c)(4)(A), struck out former par (1) which read as follows: “For purposes of this section an educational assistance program is a separate written plan of an employer for the exclusive benefit of his employees to provide such employees with educational assistance. The program must meet the requirements of paragraphs (2) through (6) of this subsection.”

   Source evidence

   Code amendment note
   Subsec. (b)(1). Pub. L. 99–514, § 1151(c)(4)(A), added par. (1) and struck out former par (1) which read as follows: “For purposes of this section an educational assistance program is a separate written plan of an employer for the exclusive benefit of his employees to provide such employees with educational assistance. The program must meet the requirements of paragraphs (2) through (6) of this subsection.”

   Enacted provision · exact public law section
   (A) by striking out paragraph (1) and inserting in lieu thereof the following new paragraph: “(1) In general.— For purposes of this section, an educational assistance program is a plan of an employer— “(A) under which the employer provides employees with educational assistance, and “(B) which meets the reouirements of paragraphs (2) through (5) and section 89(k).”, and

9. 1986

   Tax Reform Act of 1986

   Pub. L. 99–514 § 1151(g)(3) · 100 Stat. 2085

   Substituted · 26 U.S.C. § 127(b)(2)

   Pub. L. 99–514, § 1151(g)(3), substituted “For purposes of this paragraph, there may be excluded from consideration employees who may be excluded from consideration under section 89(h).” for “For purposes of this paragraph, there shall be excluded from consideration employees not included in the program who are included in a unit of employees covered by an agreement which the Secretary of Labor finds to be a collective bargaining agreement between employee representatives and one or more employers, if there is evidence that educational assistance benefits were the subject of good faith bargaining between such employee representatives and such employer or employers.”

   Source evidence

   Code amendment note
   Subsec. (b)(2). Pub. L. 99–514, § 1151(g)(3), substituted “For purposes of this paragraph, there may be excluded from consideration employees who may be excluded from consideration under section 89(h).” for “For purposes of this paragraph, there shall be excluded from consideration employees not included in the program who are included in a unit of employees covered by an agreement which the Secretary of Labor finds to be a collective bargaining agreement between employee representatives and one or more employers, if there is evidence that educational assistance benefits were the subject of good faith bargaining between such employee representatives and such employer or employers.”

   Enacted provision · exact public law section
   (3) Section 127(b)(2) is amended by striking out the last sentence thereof and inserting in lieu thereof: “For purposes of this paragraph, there may be excluded from consideration employees who may be excluded from consideration under section 89(h).”

10. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 1114(b)(4) · 100 Stat. 2085

    Substituted · 26 U.S.C. § 127(b)(2)

    Pub. L. 99–514, § 1114(b)(4), substituted “highly compensated employees (within the meaning of section 414(q))” for “officers, owners, or highly compensated,”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 99–514, § 1114(b)(4), substituted “highly compensated employees (within the meaning of section 414(q))” for “officers, owners, or highly compensated,”.

    Enacted provision · exact public law section
    (4) Sections 127(b)(2) and 129(d)(2) are each amended by striking out “officers, owners, or highly compensated,” and inserting in lieu thereof “highly compensated employees (within the eaning of section 414(q))”.

11. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 1151(c)(4)(B) · 100 Stat. 2085

    Struck · 26 U.S.C. § 127(b)(6)

    Pub. L. 99–514, § 1151(c)(4)(B), struck out par. (6) which read as follows: “Notification of employees.—Reasonable notification of the availability and terms of the program must be provided to eligible employees.”

    Source evidence

    Code amendment note
    Subsec. (b)(6). Pub. L. 99–514, § 1151(c)(4)(B), struck out par. (6) which read as follows: “Notification of employees.—Reasonable notification of the availability and terms of the program must be provided to eligible employees.”

    Enacted provision · exact public law section
    (B) by striking out paragraph (6) thereof.

12. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 1162(a)(1) · 100 Stat. 2085

    Substituted · 26 U.S.C. § 127(d)

    Pub. L. 99–514, § 1162(a)(1), substituted “December 31, 1987” for “December 31, 1985”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 99–514, § 1162(a)(1), substituted “December 31, 1987” for “December 31, 1985”.

    Enacted provision · exact public law section
    (1) Extension.— Subsection (d) of section 127 (relating to termination of exclusion for amounts received under educational assistance programs) is amended by striking out “1985” and inserting in lieu thereof “1987”.

13. 1988

    Technical and Miscellaneous Revenue Act of 1988

    Pub. L. 100–647 § 1011B(a)(31)(B) · 102 Stat. 3342

    1. Substituted · 26 U.S.C. § 127(b)(2)

       Pub. L. 100–647, § 1011B(a)(31)(B), substituted “there shall” for “there may” in last sentence

    2. Substituted · 26 U.S.C. § 127(b)(2)

       Pub. L. 100–647, § 1011B(a)(31)(B), substituted “who are” for “who may be” in last sentence

    Source evidence

    Code amendment note
    Subsec. (b)(2). Pub. L. 100–647, § 1011B(a)(31)(B), substituted “there shall” for “there may” and “who are” for “who may be” in last sentence.

    Enacted provision · exact public law section
    (B) Sections 117(d)(4), 120(c)(2), 127(b)(2), 132(h)(1), and 505(b)(2) of the 1986 Code are each amended— (i) by striking out “may” the first place it appears and inserting in lieu thereof “shall”, and (ii) by striking out “may be” the second place it appears and inserting in lieu thereof “are”.

14. 1988

    Technical and Miscellaneous Revenue Act of 1988

    Pub. L. 100–647 § 4001(b)(1) · 102 Stat. 3342

    Inserted · 26 U.S.C. § 127(c)(1)

    Pub. L. 100–647, § 4001(b)(1), inserted at end “The term ‘educational assistance’ also does not include any payment for, or the provision of any benefits with respect to, any graduate level course of a kind normally taken by an individual pursuing a program leading to a law, business, medical, or other advanced academic or professional degree.”

    Source evidence

    Code amendment note
    Subsec. (c)(1). Pub. L. 100–647, § 4001(b)(1), inserted at end “The term ‘educational assistance’ also does not include any payment for, or the provision of any benefits with respect to, any graduate level course of a kind normally taken by an individual pursuing a program leading to a law, business, medical, or other advanced academic or professional degree.”

    Enacted provision · exact public law section
    (1) In general.— Paragraph (1) of section 127(c) of the 1986 Code is amended by adding at the end thereof the following new sentence: “The term ‘educational assistance’ also does not include any payment for, or the provision of any benefits with respect to, any graduate level course of a kind normally taken by an individual pursuing a program leading to a law, business, medical, or other advanced academic or professional degree.”

15. 1988

    Technical and Miscellaneous Revenue Act of 1988

    Pub. L. 100–647 § 4001(a) · 102 Stat. 3342

    Substituted · 26 U.S.C. § 127(d)

    Pub. L. 100–647, § 4001(a), substituted “1988” for “1987”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 100–647, § 4001(a), substituted “1988” for “1987”.

    Enacted provision · exact public law section
    (a) Extension.— Subsection (d) of section 127 of the 1986 Code (relating to educational assistance programs) is amended by striking out “December 31, 1987” and inserting in lieu thereof “December 31, 1988”.

16. 1989

    Pub. L. 101–140 § 203(a)(1) · 103 Stat. 830

    Amended · 26 U.S.C. § 127(b)(1)

    Pub. L. 101–140, § 203(a)(1), amended par. (1) to read as if amendments by Pub. L. 99–514, § 1151(c)(4)(A), had not been enacted, see 1986 Amendment note below

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 101–140, § 203(a)(1), amended par. (1) to read as if amendments by Pub. L. 99–514, § 1151(c)(4)(A), had not been enacted, see 1986 Amendment note below.

    Enacted provision · exact public law section
    (1) Each provision of law amended by subsection (b), (c), (d)(1), or (g) of section 1151 of the Tax Reform Act of 1986 is amended to read as if the amendments made by such subsection had not been enacted.

17. 1989

    Pub. L. 101–140 § 203(a)(2) · 103 Stat. 830

    Amended · 26 U.S.C. § 127(b)(2)

    Pub. L. 101–140, § 203(a)(2), amended par. (2) to read as if amendments by Pub. L. 100–647, § 1011B(a)(31)(B), had not been enacted, see 1988 Amendment note below

    Source evidence

    Code amendment note
    Subsec. (b)(2). Pub. L. 101–140, § 203(a)(2), amended par. (2) to read as if amendments by Pub. L. 100–647, § 1011B(a)(31)(B), had not been enacted, see 1988 Amendment note below.

    Enacted provision · exact public law section
    (2) Each provision of law amended by paragraph (22), (27), or (31) of section 1011B(a) of the Technical and Miscellaneous 26 USC 3121, 3231, 3306, 3401, 4976, 505, 129, 117, 120, 127, 132; 42 USC 409. Revenue Act of 1988 is amended to read as if the amendments made by such paragraph had not been enacted.

18. 1989

    Pub. L. 101–140 § 203(a)(1) · 103 Stat. 830

    Amended · 26 U.S.C. § 127(b)(2)

    Pub. L. 101–140, § 203(a)(1), amended par. (2) to read as if amendments by Pub. L. 99–514, § 1151(g)(3), had not been enacted, see 1986 Amendment note below

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 101–140, § 203(a)(1), amended par. (2) to read as if amendments by Pub. L. 99–514, § 1151(g)(3), had not been enacted, see 1986 Amendment note below.

    Enacted provision · exact public law section
    (1) Each provision of law amended by subsection (b), (c), (d)(1), or (g) of section 1151 of the Tax Reform Act of 1986 is amended to read as if the amendments made by such subsection had not been enacted.

19. 1989

    Pub. L. 101–140 § 203(a)(1) · 103 Stat. 830

    Amended · 26 U.S.C. § 127(b)(6)

    Pub. L. 101–140, § 203(a)(1), amended par. (6) to read as if amendments by Pub. L. 99–514, § 1151(c)(4)(B), had not been enacted, see 1986 Amendment note below

    Source evidence

    Code amendment note
    Subsec. (b)(6). Pub. L. 101–140, § 203(a)(1), amended par. (6) to read as if amendments by Pub. L. 99–514, § 1151(c)(4)(B), had not been enacted, see 1986 Amendment note below.

    Enacted provision · exact public law section
    (1) Each provision of law amended by subsection (b), (c), (d)(1), or (g) of section 1151 of the Tax Reform Act of 1986 is amended to read as if the amendments made by such subsection had not been enacted.

20. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 § 7814(a) · 103 Stat. 2106

    Struck · 26 U.S.C. § 127(c)(8)

    Pub. L. 101–239, § 7814(a), struck out par. (8) which read as follows: “Coordination with section 117(d).—In the case of the education of an individual who is a graduate student at an educational organization described in section 170(b)(1)(A)(ii) and who is engaged in teaching or research activities for such organization, section 117(d)(2) shall be applied as if it did not contain the phrase ‘(below the graduate level)’.”

    Source evidence

    Code amendment note
    Subsec. (c)(8). Pub. L. 101–239, § 7814(a), struck out par. (8) which read as follows: “Coordination with section 117(d).—In the case of the education of an individual who is a graduate student at an educational organization described in section 170(b)(1)(A)(ii) and who is engaged in teaching or research activities for such organization, section 117(d)(2) shall be applied as if it did not contain the phrase ‘(below the graduate level)’.”

    Enacted provision · exact public law section
    (a) Amendment Related to Section 4001 of the 1988 Act.— Subsection (c) of section 127 is amended by striking paragraph (8).

21. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 § 7101(a)(1) · 103 Stat. 2106

    Substituted · 26 U.S.C. § 127(d)

    Pub. L. 101–239, § 7101(a)(1), substituted “September 30, 1990” for “December 31, 1988”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 101–239, § 7101(a)(1), substituted “September 30, 1990” for “December 31, 1988”.

    Enacted provision · exact public law section
    (1) In general—Subsection (d) of section 127 (relating to educational assistance programs) is amended by striking “December 31, 1988” and inserting “September 30, 1990”.

22. 1990

    Revenue Reconciliation Act of 1990

    Pub. L. 101–508 § 11403(b) · 104 Stat. 1388

    Struck · 26 U.S.C. § 127(c)(1)

    Pub. L. 101–508, § 11403(b), struck out at end “The term ‘educational assistance’ also does not include any payment for, or the provision of any benefits with respect to, any graduate level course of a kind normally taken by an individual pursuing a program leading to a law, business, medical, or other advanced academic or professional degree.”

    Source evidence

    Code amendment note
    Subsec. (c)(1). Pub. L. 101–508, § 11403(b), struck out at end “The term ‘educational assistance’ also does not include any payment for, or the provision of any benefits with respect to, any graduate level course of a kind normally taken by an individual pursuing a program leading to a law, business, medical, or other advanced academic or professional degree.”

    Enacted provision · exact public law section
    (b) Repeal of Limitation on Graduate Level Assistance.— Section 127(c)(1) is amended by striking the last sentence.

23. 1990

    Revenue Reconciliation Act of 1990

    Pub. L. 101–508 § 11403(a) · 104 Stat. 1388

    Substituted · 26 U.S.C. § 127(d)

    Pub. L. 101–508, § 11403(a), substituted “December 31, 1991” for “September 30, 1990”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 101–508, § 11403(a), substituted “December 31, 1991” for “September 30, 1990”.

    Enacted provision · exact public law section
    (a) In General.— Subsection (d) of section 127 (relating to educational assistance programs) is amended by striking “September 30, 1990” and inserting “December 31, 1991”.

24. 1991

    Pub. L. 102–227 title I § 103(a)(1) · 105 Stat. 1686

    Substituted · 26 U.S.C. § 127(d)

    Pub. L. 102–227 substituted “June 30, 1992” for “December 31, 1991”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 102–227 substituted “June 30, 1992” for “December 31, 1991”.

    Enacted provision · exact public law section
    (1) In general.— Subsection (d) of section 127 (relating to educational assistance programs) is amended by striking “December 31, 1991” and inserting “June 30, 1992”.

25. 1993

    Revenue Reconciliation Act of 1993

    Pub. L. 103–66 title XIII § 13101(a)(1) · 107 Stat. 312

    Substituted · 26 U.S.C. § 127(d)

    Pub. L. 103–66 substituted “December 31, 1994” for “June 30, 1992”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 103–66 substituted “December 31, 1994” for “June 30, 1992”.

    Enacted provision · exact public law section
    (1) 26 USC 127. In general.— Subsection (d) of section 127 (relating to educational assistance programs) is amended to read as follows: “(d) Termination.— This section shall not apply to taxable years beginning after December 31, 1994.”

26. 1996

    Small Business Job Protection Act of 1996

    Pub. L. 104–188 § 1202(b) · 110 Stat. 1755

    Inserted · 26 U.S.C. § 127(c)(1)

    Pub. L. 104–188, § 1202(b), in closing provisions, inserted before period at end “, and such term also does not include any payment for, or the provision of any benefits with respect to, any graduate level course of a kind normally taken by an individual pursuing a program leading to a law, business, medical, or other advanced academic or professional degree”

    Source evidence

    Code amendment note
    Subsec. (c)(1). Pub. L. 104–188, § 1202(b), in closing provisions, inserted before period at end “, and such term also does not include any payment for, or the provision of any benefits with respect to, any graduate level course of a kind normally taken by an individual pursuing a program leading to a law, business, medical, or other advanced academic or professional degree”.

    Enacted provision · exact public law section
    (b) Limitation To Education Below Graduate Level.— The last sentence of section 127(c)(1) is amended by inserting before the period the following: “, and such term also does not include any payment for, or the provision of any benefits with respect to, any graduate level course of a kind normally taken by an individual pursuing a program leading to a law, business, medical, or other advanced academic or professional degree”.

27. 1996

    Small Business Job Protection Act of 1996

    Pub. L. 104–188 § 1202(a) · 110 Stat. 1755

    Substituted · 26 U.S.C. § 127(d)

    Pub. L. 104–188, § 1202(a), substituted “May 31, 1997. In the case of any taxable year beginning in 1997, only expenses paid with respect to courses beginning before July 1, 1997, shall be taken into account in determining the amount excluded under this section.” for “December 31, 1994.”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 104–188, § 1202(a), substituted “May 31, 1997. In the case of any taxable year beginning in 1997, only expenses paid with respect to courses beginning before July 1, 1997, shall be taken into account in determining the amount excluded under this section.” for “December 31, 1994.”

    Enacted provision · exact public law section
    (a) Extension.— Subsection (d) of section 127 (relating to educational assistance programs) is amended by striking “December 31, 1994.” and inserting “May 31, 1997. In the case of any taxable year beginning in 1997, only expenses paid with respect to courses beginning before July 1, 1997, shall be taken into account in determining the amount excluded under this section.”.

28. 1997

    Pub. L. 105–34 title II § 221(a) · 111 Stat. 788

    Amended · 26 U.S.C. § 127(d)

    Pub. L. 105–34 amended heading and text of subsec. (d) generally. Prior to amendment, text read as follows: “This section shall not apply to taxable years beginning after May 31, 1997. In the case of any taxable year beginning in 1997, only expenses paid with respect to courses beginning before July 1, 1997, shall be taken into account in determining the amount excluded under this section.”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 105–34 amended heading and text of subsec. (d) generally. Prior to amendment, text read as follows: “This section shall not apply to taxable years beginning after May 31, 1997. In the case of any taxable year beginning in 1997, only expenses paid with respect to courses beginning before July 1, 1997, shall be taken into account in determining the amount excluded under this section.”

    Enacted provision · exact public law section
    (a) In General.— Subsection (d) of section 127 (relating to educational assistance programs) is amended to read as follows: “(d) Termination.— This section shall not apply to expenses paid with respect to courses beginning after May 31, 2000.”.

29. 1999

    Tax Relief Extension Act of 1999

    Pub. L. 106–170 title V § 506(a) · 113 Stat. 1860

    Substituted · 26 U.S.C. § 127(d)

    Pub. L. 106–170 substituted “December 31, 2001” for “May 31, 2000”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 106–170 substituted “December 31, 2001” for “May 31, 2000”.

    Enacted provision · exact public law section
    (a) In General.— Subsection (d) of section 127 of the Internal 26 USC 127. Revenue Code of 1986 (relating to termination) is amended by striking “May 31, 2000” and inserting “December 31, 2001”.

30. 2001

    Pub. L. 107–16 § 411(b) · 115 Stat. 38

    Struck · 26 U.S.C. § 127(c)(1)

    Pub. L. 107–16, § 411(b), struck out before period at end “, and such term also does not include any payment for, or the provision of any benefits with respect to, any graduate level course of a kind normally taken by an individual pursuing a program leading to a law, business, medical, or other advanced academic or professional degree”

    Source evidence

    Code amendment note
    Subsec. (c)(1). Pub. L. 107–16, § 411(b), struck out before period at end “, and such term also does not include any payment for, or the provision of any benefits with respect to, any graduate level course of a kind normally taken by an individual pursuing a program leading to a law, business, medical, or other advanced academic or professional degree”.

    Enacted provision · exact public law section
    (b) Repeal of Limitation on Graduate Education.— The last sentence of section 127(c)(1) is amended by striking “, and such term also does not include any payment for, or the provision of any benefits with respect to, any graduate level course of a kind normally taken by an individual pursuing a program leading to a law, business, medical, or other advanced academic or professional degree”.

31. 2001

    Pub. L. 107–16 § 411(a) · 115 Stat. 38

    1. Redesignated · 26 U.S.C. § 127(d); 26 U.S.C. § 127(e)

       Pub. L. 107–16, § 411(a), redesignated subsec. (e) as (d)

    2. Struck · 26 U.S.C. § 127(d); 26 U.S.C. § 127(e)

       Pub. L. 107–16, § 411(a), struck out heading and text of former subsec. (d). Text read as follows: “This section shall not apply to expenses paid with respect to courses beginning after December 31, 2001.”

    Source evidence

    Code amendment note
    Subsecs. (d), (e). Pub. L. 107–16, § 411(a), redesignated subsec. (e) as (d) and struck out heading and text of former subsec. (d). Text read as follows: “This section shall not apply to expenses paid with respect to courses beginning after December 31, 2001.”

    Enacted provision · exact public law section
    (a) In general.— Section 127 (relating to exclusion for educational assistance programs) is amended by striking subsection (d) and by redesignating subsection (e) as subsection (d).

32. 2020

    Coronavirus Aid, Relief, and Economic Security Act

    Pub. L. 116–136 div. A title II § 2206(a) · 134 Stat. 281

    Redesignated · 26 U.S.C. § 127(c)(1)(B)

    Pub. L. 116–136 added subpar. (B). Former subpar. (B) redesignated (C)

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 116–136 added subpar. (B). Former subpar. (B) redesignated (C).

    Enacted provision · exact public law section
    (a) In General.— Paragraph (1) of section 127(c) of the Internal Revenue Code of 1986 is amended by striking “and” at the end of subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting after subparagraph (A) the following new subparagraph: “(B) in the case of payments made before January 1, 2021, the payment by an employer, whether paid to the employee or to a lender, of principal or interest on any qualified education loan (as defined in section 221(d)(1)) incurred by the employee for education of the employee, and” .

33. 2020

    Coronavirus Aid, Relief, and Economic Security Act

    Pub. L. 116–136 div. A title II § 2206(a) · 134 Stat. 281

    Redesignated · 26 U.S.C. § 127(c)(1)(C)

    Pub. L. 116–136 redesignated subpar. (B) as (C)

    Source evidence

    Code amendment note
    Subsec. (c)(1)(C). Pub. L. 116–136 redesignated subpar. (B) as (C).

    Enacted provision · exact public law section
    (a) In General.— Paragraph (1) of section 127(c) of the Internal Revenue Code of 1986 is amended by striking “and” at the end of subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting after subparagraph (A) the following new subparagraph: “(B) in the case of payments made before January 1, 2021, the payment by an employer, whether paid to the employee or to a lender, of principal or interest on any qualified education loan (as defined in section 221(d)(1)) incurred by the employee for education of the employee, and” .

34. 2020

    Department of the Treasury Appropriations Act, 2021

    Pub. L. 116–260 div. EE title I § 120(a) · 134 Stat. 1182

    Substituted · 26 U.S.C. § 127(c)(1)(B)

    Pub. L. 116–260 substituted “January 1, 2026” for “January 1, 2021”

    Source evidence

    Code amendment note
    Subsec. (c)(1)(B). Pub. L. 116–260 substituted “January 1, 2026” for “January 1, 2021”.

    Enacted provision · exact public law section
    Sec. 120. The Plan. Deadline. Secretary of the Treasury shall submit a Capital Investment Plan to the Committees on Appropriations of the House of Representatives and the Senate not later than 30 days following the submission of the annual budget submitted by the President: Provided, That such Capital Investment Plan shall include capital investment spending from all accounts within the Department of the Treasury, including but not limited to the Department-wide Systems and Capital Investment Programs account, Treasury Franchise Fund account, and the Treasury Forfeiture Fund account: Provided further, That such Capital Investment Plan shall include expenditures occurring in previous fiscal years for each capital investment project that has not been fully completed.

35. 2025

    Pub. L. 119–21 § 70412(a) · 139 Stat. 218

    Struck · 26 U.S.C. § 127(c)(1)(B)

    Pub. L. 119–21, § 70412(a), struck out “in the case of payments made before January 1, 2026,” before “the payment by an employer,”

    Unresolved: Pub. L. 119–21 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (c)(1)(B). Pub. L. 119–21, § 70412(a), struck out “in the case of payments made before January 1, 2026,” before “the payment by an employer,”.

    Effective date note
    Pub. L. 119–21, title VII, § 70412(c), July 4, 2025, 139 Stat. 218, provided that: “The amendment made by this section [amending this section] shall apply to payments made after December 31, 2025.”

36. 2025

    Pub. L. 119–21 § 70412(b) · 139 Stat. 218

    1. Added · 26 U.S.C. § 127(d); 26 U.S.C. § 127(e)

       Pub. L. 119–21, § 70412(b), added subsec. (d)

    2. Redesignated · 26 U.S.C. § 127(d); 26 U.S.C. § 127(e)

       Pub. L. 119–21, § 70412(b), redesignated former subsec. (d) as (e)

    Unresolved: Pub. L. 119–21 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsecs. (d), (e). Pub. L. 119–21, § 70412(b), added subsec. (d) and redesignated former subsec. (d) as (e).

    Effective date note
    Pub. L. 119–21, title VII, § 70412(c), July 4, 2025, 139 Stat. 218, provided that: “The amendment made by this section [amending this section] shall apply to payments made after December 31, 2025.”

40 of 43 references resolved to an enrolled provision · 3 unresolved