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Maratita wants repeal of education tax credit
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Posted on Oct 04 2004
A member of the House of Representatives wants to repeal the education tax credit law, citing that the Commonwealth “loses significant revenue” as a result of the law.
Rep. Janet Maratita, in House Bill 14-238, said such income could be used “to fund the pressing needs of the Commonwealth for essential services in the areas of education, public utilities, health care, and public safety.”
As early as last year, both public and private schools officials had decided to adopt a common position paper for submission to Legislature supporting the retention of the Education Tax Credit Law.
Private school coalition president Scott Norman said the message was “for the Legislature to leave the law alone.”
“It’s a good law. It’s the best law ever passed by any legislature,” said Norman.
Norman had said that schools saw the need to openly back the law amid reports that the Legislature planned to amend the statute.
Likewise, then Board of Education chair Herman T. Guerrero expressed the same sentiment, saying that ETC funds from private businesses are most useful to the education sector, especially during times of financial crisis.
The BOE had even instructed PSS principals to pursue ETCs more aggressively.
Under the law, private businesses or individuals can give as much as $5,000 a year to academic institutions as a form of tax credit.
On the concern about the misuse of the tax credit money, Norman said there are built-in safeguards against such abuse.
“If there’s fraud, then there’s enough laws already in place. Businesses and private schools can be prosecuted to the fullest extent of the law, but don’t use this as a reason to amend the law. It’s a good law. We don’t want it amended,” he said.
