TN · Credential

Tennessee Credential Reimbursement Programs for Employers

Tennessee has no state program that reimburses an employer for tuition or credentials it pays for staff. What exists helps the worker or the college. The Tennessee Reconnect Grant pays adult students' tuition at community and technical colleges. For your own spending, federal law lets you give each employee up to $5,250 a year of tax-free educational assistance, made permanent for payments after 2025.

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State pre-filled: TN
Program type pre-filled: credential_reimbursement

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HOW IT WORKS

Four steps, in this order.

1
Set up a written educational assistance plan
2
Pay tuition, books or fees for employees, up to $5,250 each a year
3
Point adult employees to Tennessee Reconnect and their local TCAT or college
4
Keep records for payroll and tax reporting

2 VERIFIED PROGRAMS

Where the Tennessee money comes from.

Run by Tennessee Reconnect (Tennessee Higher Education Commission) and the IRS (employer educational assistance). Every figure is from an official page, linked on each card.

Employer educational assistance (federal tax exclusion)

Up to $5,250 per employee, tax-free

ONGOING

WHAT YOU GET

A way to cover employee tuition, books, fees and supplies tax-free to the employee, under a plan.

HOW MUCH

Up to $5,250 per employee per year. P.L. 119-21 made the exclusion permanent for payments after 2025. Assistance above $5,250 is taxable wages.

WHO RECEIVES THE MONEY

The employee is not taxed on it. The employer pays the cost and gets no state reimbursement.

WHO QUALIFIES

A written educational assistance program
Education expenses for employees, generally including tuition, fees, books, supplies
Not for courses involving sports, games or hobbies unless job-related

Before you start: Not applicable.

Tennessee Reconnect Grant (adult students)

Tuition help for adult employees, paid to the student

ONGOING

WHAT YOU GET

Nothing directly. Employees who qualify can attend with little or no tuition, which lowers what you need to pay.

HOW MUCH

Last-dollar: the balance of tuition and mandatory fees after other state and federal aid, at community and technical colleges and TCATs.

WHO RECEIVES THE MONEY

The adult student's tuition account. The employer receives nothing.

WHO QUALIFIES

Adult learner without an associate or bachelor degree
Tennessee resident, admitted to an eligible institution
The student applies, not the employer

Before you start: Not applicable. The student applies.

AVOID THESE

What gets Tennessee Credential claims denied.

Paying more than $5,250 and treating it as tax-free.
SOURCE: IRS.GOV
No written plan.
SOURCE: IRS.GOV
Expecting Reconnect to pay you back.
SOURCE: TNRECONNECT.GOV

STRAIGHT ANSWERS

Tennessee Credential questions.

Will Tennessee reimburse tuition I pay for employees?

No state program was found. The Reconnect Grant goes to students. Your tax-free benefit is the federal $5,250 exclusion.

SOURCE: TNRECONNECT.GOV

Is the $5,250 limit permanent?

IRS Publication 15-B says P.L. 119-21 permanently extends the $5,250 exclusion for payments made after 2025.

SOURCE: IRS.GOV

Can I include student loan payments?

Yes, within the same $5,250 limit, as the IRS describes employer payments of student loans.

SOURCE: IRS.GOV

Do my employees need to pay community college tuition?

Often not. The Board of Regents says people in all 95 counties have access to a community or technical college, likely tuition-free.

SOURCE: TBR.EDU

How we checked. Every fact on this page comes from a state agency, a local workforce board or federal regulation, read on September 30, 2026. Where a board publishes nothing, we say so instead of guessing. Programs and funding change often; confirm with the program before you commit. Written by Jason Meehl, founder of Reimbursa. Found an error? Email hello@reimbursa.com.

OTHER PROGRAMS IN TENNESSEE

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