Molly Moorhead
By Molly Moorhead January 21, 2013

Fiscal cliff deal includes five-year extension

The 2009 stimulus bill created the American Opportunity Tax Credit, which was a reimagining and expansion of the existing Hope scholarship credit. After one extension in 2010, the tax credit expired in 2012, and President Obama vowed to extend it again.

The credit is worth up to $2,500 a year for each college student in a family. It can be claimed for four years, so it's worth a total of up to $10,000. It covers tuition, books, supplies and student-activity fees.

In the deal reached late on Jan. 1, 2013, to avoid the sudden spending cuts and tax increases known as the fiscal cliff, Congress agreed to extend the tax credit for another five years.

So it's now set to expire at the end of 2017, and that extension means this earns a Promise Kept.

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