Click here for coverage of the February 14th Education Tax Credit Rally at the State Capitol The largest school choice rally in the nation’s history!		State Legislature Takes “Education” Out of ETC The New York State Legislature amended Governor Pataki’s proposed education tax credit to take out any tie to education. The Legislature has instead proposed a universal $330 per child (ages 4-17) credit, money that can be spent on anything from iPods to ice cream. Governor Pataki's Education Tax Credit Proposal Governor George Pataki's 2006-07 executive budget includes a proposal that would allow individuals to claim a refundable taxable credit up to $500 per eligible dependent for qualifying educational expenses. The proposal is a valuable, exciting development in education reform. Now, parents who are the most in need of choices in education have a new door opened to them. All school options, including private school, become more affordable to parents, and children in lower-income families can receive tutoring and participate in extra learning activities without the typical accompanying financial burdens.
	An Education Tax Credit Plan for New York: Creating New Education Options for Parents
	Press Release
	Report

 

Resources and Other Information

	Press Release: Education Tax Credit Creates Opportunity for Empowering Families and Increasing Access to Quality Options		Summary of Gov. Pataki's Proposed Education Tax Credit
	Report: An Education Tax Credit Plan for New York: Creating New Education Options for Parents		Text of Gov. Pataki's Proposed Education Tax Credit Legislation
	FERA President Tom Carroll: Choice Storm: An Education Tax Credit in New York?, New York Post (1/23/2006)		Summary of Education Tax Break Legislation in New York (2005-06 Session)
	Press Release: Analysis by Spitzer Counsel Finds Education Tax Credits No Problem		Districts Where Residents Would Qualify for the Education Tax Credit
	FERA President Tom Carroll on Gov. Pataki's Proposed Education Tax Credit Plan		Education Tax Credit Laws in Other States
	Quotes on Education Tax Credits

News Articles

Support for New York's Proposed Education Tax Credit

Opposition to New York's Proposed Education Tax Credit

Gubernatorial Candidates on New York's Proposed Education Tax Credit

Tax credits are an alternative to vouchers that increase choice options but stop short of providing tuition funds directly to parents or schools. Instead, qualified expenses are deducted from an overall tax obligation, thereby easing the financial strain of education costs. Tax credits typically work in one of two ways: 1) allowing parents to spend money on tuition expenses tax free through a direct deduction; or, 2) allowing businesses to take a deduction for donations to qualified scholarship funds.

Many states have initiated tax credit programs, including: Minnesota, Illinois, Pennsylvania, Arizona, Florida, and Iowa.

The federal government also provides two tax credit programs for students pursuing higher education. The HOPE and Lifetime Learning tax credits are available to college students meeting qualifying criteria. Check out the IRS website for more information.

Patrick L Anderson; Richard McLellan, JD; Joseph P Overton, JD; and Gary Wolfram, PhD, “The Universal Tuition Tax Credit: A Proposal to Advance Choice in Education,” Mackinac Center for Public Policy, November 1997.

This report by the Mackinac Center proposes a way to establish a tax credit program to offer educational choice to all citizens and save tax dollars in the process. While specific to constitutional changes for Michigan, the ideas can be applied to circumstances in many places. The authors included fiscal analysis and a discussion on choice philosophy in the report. 

 

Carrie Lips Lucas, “The Arizona Scholarship Tax Credit: Providing Choice for Arizona Taxpayers and Students,” Goldwater Institute, December 2003.

This report examines the Arizona school choice program that created a $500 dollar tax credit for individuals or businesses that donated to qualifying nonprofits for scholarships. The author discusses the fiscal impacts of the program, program characteristics, and possible modifications.

 

David F Salisbury, Phd; Richard Maxfield, Phd; Maxwell Miller, Esq; Jim Bischoff, MS; The Universal Tuition Tax Credit: Advancing Excellence through Parental Choice and Empowerment,” The Sutherland Institute, October 1999.

The Sutherland Institute examines the idea of Universal Tuition Tax Credits and the potential impacts on the state of Utah. The study examines parental choice, financial impacts, constitutional theory, and answers to common questions about tax credits.

 

Jospeh G. Lehman, “Vouchers or Tuition Tax Credits: Which is the Better Choice for School Choice?” National Conference of State Legislatures Annual Conference, July 20, 2004.

Joseph G Lehman of the Mackinac Center for Public Policy delivered this talk to the attendees of a meeting hosted by the National Conference of State Legislatures. It is a thoughtful discussion of the differences between two similar forms of school choice, tax credits and vouchers.

The Heartland Institute offers a comprehensive compilation of many studies and scholarly articles written on tax credits, available at: www.heartland.org/PolicyBotTopic.cfm?artTopic=440