Bill
SD 1874
Summary of SD 1874: Excluding Segal AmeriCorps Educational Award from Taxable Income Bill OverviewSD 1874 is a proposed bill that aims to exclude the Segal AmeriCorps Educational A
SD 1874 is a proposed bill that aims to exclude the Segal AmeriCorps Educational Award from being considered taxable income. The bill was introduced on February 27, 2025 and has currently passed the House.
The main elements of this bill include:
Exempting Segal AmeriCorps Educational Award: The bill would amend the Internal Revenue Code to explicitly state that the Segal AmeriCorps Educational Award should not be included in a recipient's taxable income. This award is provided to members of the AmeriCorps national service program upon completing their term of service.
Retroactive Application: The tax exemption would apply retroactively, covering Segal AmeriCorps Educational Awards received in tax years beginning after December 31, 2017.
No Impact on Eligibility: The bill clarifies that excluding the award from taxable income would not affect the recipient's eligibility for any other federal, state, or local government assistance programs.
This legislation would directly benefit current and former AmeriCorps members by ensuring the educational award they receive is not subject to federal income taxes.
According to the bill text, over 1 million Americans have participated in AmeriCorps since its inception in 1994. The Segal AmeriCorps Educational Award can be used to pay for college, graduate education, or vocational training, or to repay student loans. Excluding it from taxable income will provide significant financial relief to these national service volunteers.
Additionally, the retroactive application of this tax exemption could result in refunds or reduced tax liabilities for AmeriCorps alumni who have already received their educational awards in recent tax years.
After being introduced in the House on February 27, 2025, SD 1874 has already passed the House chamber. The bill will now move to the Senate for consideration and a potential vote. If passed by the Senate and signed into law by the President, the tax exemption would take effect immediately and apply retroactively to relevant tax years.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
