Recently, the Obama administration launched an economic stimulus package including a new Textbook Tax Credit for which many CCC students are eligible. This new government program will now reimburse students for up to 100% of the cost of required textbooks and other course materials.
For example, if a student has out-of-pocket course material expenses or tuition and fees during 2009 or 2010 and no other financial grant aid covers those expenses, they would be able to claim the expenses as a credit. For each student the credit is limited to $2,500.
In the past, the Hope and Lifetime Learning credits did not cover textbooks. This exclusion disadvantaged many students for which textbooks are a high proportion of their total costs of higher education. This stimulus bill creates the American Opportunity Tax Credit, which will credit 100% of a student's first $2000 in tuition, fees, and course materials, and 25% of the next $2000. The credit is also 40% refundable, so even if a student doesn't owe taxes, he or she can effectively get a 40% rebate from the federal government for all tuition, fees and course materials.