Treasury trumpets college tax credit

Recipients received an average tax credit of more than $1,700, an increase of almost 75 percent over the average Hope Credit or Lifetime Credit in 2008. 

The max AOTC credit is $2,500 and phases out completely for families earning over $180,000.

The report also found 4.5 million students and families were able to take advantage of the credit because it was refundable.

President Obama seeks to make the measure permanent, which would cost $58 billion over 10 years. Its cost would have to be offset under pay-as-you-go rules. 

The credit is slated to expire next year, and it is unclear if the provision will be debated in the lame-duck session. 

“We’re not going to prejudge the congressional strategy,” a White House official told reporters. 

President Obama is expected to meet with local college students later on Wednesday to talk about the impact of the credit.