Previous Story
Legislation needed for education tax credits
|
Posted on Feb 17 1999
A provision to specifically direct contributions to instruction is needed to regulate the proceeds derived from the educational tax credit, according to Rep. Karl Reyes, chairman of the ways and means committee.
He made this proposal following campaigns launched by both public and private schools to chase the dollars of tax payers in the name of education.
“The school is at liberty to use the money, no matter how they use it,” he said.
He expressed concerns over the use of these contributions other than instruction .
“For the private schools, they might use those donations to religious instruction which is not the intent of the government,” he said, adding “that would be the gray area because even the Federal government does not allow private schools to use federal programs under religious instruction.”
However, he favors this educational tax credit even if it brings less revenue to the CNMI government.
“It directs more to the education of the kids rather than to Public Works or just the maintenance of public meetings,” he said.
The educational tax credit allows businesses and individuals to invest up to $5,000 to academic institutions and claim this exemption against their CNMI Tax Liability.
For the Public School System, Hopwood Junior High School is aggressive in its campaign, gathering close to $30,000 contributions. For private schools, Calvary Christian Academy reported over $30,000 donation, while Grace Christian will use such contributions to help build its cafeteria.
