SCHUMER VISITS THE COLLEGE OF ST. ROSE IN ALBANY TO ANNOUNCE LAST-MINUTE PASSAGE OF HIS COLLEGE TUITION TAX CREDIT THAT WILL SAVE MIDDLE-CLASS CAPITAL REGION RESIDENTS THOUSANDS IN TAX BREAKS TO DEFRAY TUITION COSTS
brbrIn Fiscal Cliff Deal, Schumer-Authored Tax Credit Was Nearly Terminated for Middle-Class Families in Capital Region Schumer Fought to Preserve Credit of Up To $2,500, Which Will Continue to Make College More Affordable for Another Five YearsbrbrFor Every $1 Spent On College Tuition, Middle-Class Families Can Get $1 Off On Their Taxes, Up To $2,500brbrSchumer: Credits Extension Is a Big Victory for Cap Region Provides Middle-Class Families Millions in Savingsbrbr
Today, standing at The College of St. Rose, U.S. Senator Charles E. Schumer announced that his legislation, the American Opportunity Tax Credit (AOTC), was included in the 11 thhour of the fiscal cliff deal, and will continue to provide up to $2,500 in college tuition tax credits to middleclass families for the next five years. Schumer fought to ensure his college tuition tax credit made it into the final package, which will continue help the vast majority of Capital Region families and students, like those at St. Rose, to save thousands in tuition payments each year.
"As I stand here with students from St. Rose, I am proud to announce that a critical tool for middle class families was extended in the fiscal cliff deal - the college tuition tax credit," said Schumer. "A college education is a necessity that is being priced as a luxury - and it's breaking the bank for students and families across the region. That's why I fought for the American Opportunity Tax Credit at year's end so that it can continue to provide up to $2,500 in college tuition tax credits to middleclass families in the Capital Region for the next five years."
Schumer was joined by St. Rose President David Szczerbacki, students and faculty. The Schumerauthored college tuition tax credit was originally signed into law as part of the American Recovery and Reinvestment Act of 2009, but was due to expire at the of 2010. However, Schumer was able to include a 2year extension of his tax credit as part of the tax package that passed the Senate in 2010. Today, joined by students that could benefit from his credit, Schumer announced that he has led the charge to extend the AOTC yet again, now for five additional years through 2017.
Schumer's legislation transformed the HOPE tuition credit into the $2,500 American Opportunity Tax Credit, for the cost of tuition and related expenses paid during the taxable year. The Schumer credit represents an overall benefit that is at least twoandahalf times greater than the previous tuition benefits. Under this tax credit, taxpayers receive a tax credit based on 100 percent of the first $2,000 of tuition and related expenses (including course materials) paid during the taxable year and 25 percent of the next $2,000 of tuition and related expenses paid during the taxable year. Forty percent of the credit is refundable. This tax credit is subject to a phaseout for taxpayers with adjusted gross income in excess of $80,000 ($160,000 for married couples filing jointly).
Since 2009, the Schumerauthored college tuition tax credit has saved families thousands of dollars each year. Schumer highlighted that families in the Capital Region could save an estimated $150,970,000 annually. 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 affordable. According to the federal Advisory Committee on Student Financial Assistance, cost factors prevent 48 percent of collegequalified high school graduates from attending a fouryear institution and 22 percent from attending any college at all.
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