FOR IMMEDIATE RELEASE: December 15, 2010
OVER 1 MILLION NY'ERS ELIGIBLE FOR SCHUMER AUTHORED COLLEGE TUITION TAX CREDIT WORTH UP TO $2,500 PER STUDENT - MIDDLE CLASS NY FAMILIES POISED TO RECEIVE $2B IN REBATES
Credit Will Be A Major Boost For Middle Class Families - For Every $1 Spent on College Tuition, Families Could Get $1 Off on Taxes, Up to $2,500 A Year
Schumer Was Original Author of College Tuition Tax Credit Set To Expire This Year - Bill Passed Through Senate Today; Will Extend Provision for Another 2 Years
Schumer: College Tuition Tax Credit Means Money in the Pocket of New Middle Class Families
Today, U.S. Senator Charles E. Schumer released a report showing that approximately 1 million New Yorkers will be eligible to take advantage of the Schumer authored $2,500 college tuition tax credit that passed the Senate this morning, for a total of $1.93 billion next year. The provision, originally included in the American Reinvestment and Recovery Act of 2009, was set to expire at the end of this year. It will now be extended through the end of 2012.
During a conference call, Schumer discussed the importance of the credit to middle class families, and the debt faced by students who are graduating into an exceptionally difficult job market.
“A college degree is increasingly important in securing a high paying job, but middle class families are strapped for cash and the cost of tuition is spiraling ever upward. That makes the extension of the college tuition tax credit so important,” said Schumer. “By extending the tax credit for another two years, we will not only put thousands of dollars in the pockets of middle class Americans with kids in college, we will be providing them with the security of knowing that tuition will be a little bit more affordable not just next year, but the year after as well.”
The bill, which will pass the Senate at approximately 1pm today, extends the Schumer-authored college tuition tax credit that was included in the American Recovery and Reinvestment Act of 2009. Today’s move by the Senate ensures that the college tuition tax credit will be extended until 2012. Schumer’s legislation, that was included in the original stimulus bill, transformed the existing HOPE tuition credit into the $2,500 American Opportunity Tax Credit. The new Schumer credit represents an overall benefit that is at least two-and-a-half times greater than the previous tuition benefits. For families with children in college but who do not have enough income tax liability to qualify for the full credit, the law provides a refund worth up to 30 percent of the credit for each student.
Middle class New Yorkers across the state will see benefits from the extension of the college tuition tax credit. Statewide, 1,026,116 million students and their families attending college in New York will receive approximately $1.93 billion in college tuition tax credits. Below is a chart showing total tax break available to families in each region:
--Families in the Capital Region will save $151 million on college tuition.
--Families in Central New York will save $162 million on college tuition.
--Families in the Hudson Valley will save $178 million on college tuition.
--Families in the North Country will save $67 million on college tuition.
--Families in the Rochester Finger Lakes Region will save $145 million on college tuition.
--Families in the Southern Tier will save $126 million on college tuition.
--Families in Western New York will save $156 million on college tuition.
--Families in Long Island will save $212 million on college tuition.
In the last decade, college tuition has skyrocketed across the country in light of rising costs. With the recent tightening in the student loan credit market, more students of all income levels are being forced into borrowing from both federal and private lenders to finance college and they are borrowing in higher amounts than ever before. Others are forced to make tough decisions about whether or not higher education is feasible. According to the federal Advisory Committee on Student Financial Assistance, cost factors prevent 48 percent of college-qualified high school graduates from attending a four-year institution and 22 percent from attending any college at all.