Friday, January 30, 2015
Edward W. Hazen Foundation President Warns Against Education Tax Credit
Gov. Andrew Cuomo provoked strong reactions with his proposals to reform education, particularly teacher evaluation. But what escaped notice was his reference in the State of the State speech to passing the education tax credit, or ETC, a term unfamiliar to most New Yorkers. We would all do well to pay better attention, as the program could sap the state's public education budget.
Education tax credit programs, in place in 13 states, allow corporations and individuals to direct donations to nonprofits that provide scholarships to private and religious schools in exchange for a credit on their state taxes — often a dollar for dollar reduction of their tax bill. In fact, it may be possible for the donor to earn money from the exchange, as they may get a tax deduction for a charitable contribution on their federal return, even after the state has cut their state tax bill....