A 50% hike in tuition tax credits

by David Safier

The hike in private school tuition tax credits is moving right along. It passed the Senate committee and is waiting for a roll call vote. Then it's on to the House.

It's a big hike, from $500 to $750 a year per individual, and from $1000 to $1500 for a couple. Since you get it all back, anyone who already takes the credit and owes at least that much in taxes is likely to move to the higher level.

Let's do the math. In 2009, $50.8 million went into the tax credits. If everyone bumped their credit up 50%, the number would be $76.2 million. Even if it's less than that, an even bigger chunk of change won't be making it into the state coffers.

(This is part of the same bill that lets liquor distributers take private school corporate tax credits.)

I'm not sure if people can bump up their credit for their 2010 taxes. Since a bill last session says you can contribute all the way to April 15 and take it off the previous year's taxes, that may mean this is retroactive.

By the way, notice there's no mention of raising the public school tax credit? No surprise there.