# What the Upskilling and Retraining Assistance Act Does

This bill makes it easier and cheaper for employers to help their workers pay for education and training without those benefits being taxed as income. Right now, employers can provide up to $5,250 per year in educational assistance to each employee tax-free. This bill temporarily increases that limit to $12,000 per year for 2024 and 2025, meaning workers can receive more help with their education costs without having to pay taxes on that money.

The bill also expands what counts as "educational assistance" that employers can pay for. Beyond just tuition and courses, employers can now cover the cost of tools, technology, and equipment needed for training. This includes things like hand tools for construction trades, computers and software, internet access, virtual reality learning programs, and professional licensing fees. The idea is to remove barriers that prevent workers from getting the skills they need for better jobs, whether that's learning a trade or getting certified in a new field.

For workers, this means if your employer offers educational benefits, you could receive significantly more help with training costs without it counting as taxable income. For example, if you're learning a skilled trade, your employer could help cover the cost of specialized tools or equipment you need. If you're taking online courses to advance your career, they could help pay for your computer, software, and internet service. The catch is this expanded benefit is only temporary—it runs through the end of 2025, so it's meant as a short-term boost to help people retrain and upgrade their skills during a period when the job market is changing.

Upskilling and Retraining Assistance Act

Davis, Danny K.

Upskilling and Retraining Assistance Act&nbsp;This bill increaes to $12,000 in 2024-2025, the exclusion from employee gross income, for income tax purposes, of employer-paid educational assistance programs.&nbsp;The bill also expands the exclusion to include amounts paid for education-related tools and technology (e.g., hand tools, computers, software, licensure fees).&nbsp;