October 28, 2021–Due Process Institute and R Street Institute urge congressional leaders to include the repeal of the denial of the American Opportunity Tax Credit for a felony drug conviction, recommended by the House Ways and Means Committee, in the final budget reconciliation legislation. Under current law, the American Opportunity Tax Credit (AOTC) provides eligible students with a tax credit of up to $2,500 but is not available to students who have been convicted of a state or federal felony drug offense.
Educational opportunities are key to reducing recidivism; research illustrates that individuals who have access to educational programs are less likely to commit repeat offenses. Furthermore, a criminal conviction is already a barrier for those who are seeking a better life, but the arbitrary denial of incentives like the American Opportunity Tax Credit because of a felony drug conviction only makes those barriers more difficult to get through.
Even though Due Process Institute and the R Street Institute do not offer a unified position on the pending budget reconciliation legislation, we strongly support the repeal of the denial of the American Opportunity Tax Credit for students with felony drug convictions who are seeking to improve their opportunities and enhance their lives and communities.