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11-11-2009 100
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Posted on October 10, 2008 4:56 AM

Proposed bill could allow in-state students to be eligible for tax credit

In-state students and their families in need of money for college could be eligible for a tax credit of up to $1,500 per year if new legislation introduced by Rep. Kerry Benninghoff passes.

Benninghoff, R-Centre, introduced House Bill 2818 on Tuesday, also known as the Higher Education Tax Credit Bill in the hopes a credit would help students with the rising costs of college tuition.

The proposed bill would allow students or parents of students attending state-related universities, such as Penn State, to apply for a higher education credit when filing tax returns every year.

The credit would be reflected in the total refund amount, Benninghoff said.

Benninghoff said the timing of the proposed bill is important because the state has recently made motions to allow tax credits for the film industry.

He said the Film Tax Credit that has been approved in the state budget by Gov. Ed Rendell should be one of the first pools of money tapped for funding of the proposed higher education tax credit.

"If Steven Spielberg can find $75 million for tax cuts for a movie from our tax dollars, we should be able to find money to send our students to college," Benninghoff said. "If I had to choose between the Steven Spielberg or the student, I'll choose the student every time."

Steve Weitzman, press secretary for Rendell, said the tax credit was designed as an economic stimulus to have film industries invest in Pennsylvania.

Weitzman said the local impact on the economy is tremendous.

"The film industry comes in and they book hotels, eat at restaurants, hire extras, it all creates jobs for Pennsylvania," he said. "It's an invest-type thing.

Barry Ciccocioppo, deputy director of communications for Rendell, added Rendell proposed the film tax credit, and the funds for the film tax credit come from the state budget.

Benninghoff said the higher education tax bill was introduced in response to the No. 1 concern that many students have today -- how to pay their tuition.

"I have two kids in college right now who are asking these questions," Benninghoff said. "So I see this on a first-hand basis."

Julianne Stetz (junior-hotel, restaurant and institutional management) said she would support the bill because it would affect her and her peers.

"Every student is going to support it," Stetz said. "I don't see why they wouldn't."

Brendan Harnett (senior-computer science) agrees. He said he doesn't see a downside to the bill.

"It will definitely entice in-state students to go to these schools because it could be cheaper for them to attend," Harnett said.

The funding for the proposed bill should come from within the state budget, Benninghoff said.

He said there are millions of dollars sitting in the state budget that could be spent on education.

"There are funds that have been accumulated over the years and that need to be prioritized for higher education," Benninghoff said.

However, Benninghoff added the proposed credit would only be applicable to residents of Pennsylvania because it would be residents' tax money used for funding.

"I think it should go to Pennsylvania residents, if not our tax-payers would be a little distraught if it didn't happen," Benninghoff said.

Benninghoff said he hopes to primarily accomplish two main goals with the tax credit.

"First I hope to provide a significant financial relief for families, especially if they have more than one child in college," he said. "Second, I hope that I can create opportunities for students who are on the borderline of attending college because of costs."

Benninghoff suggested the advocacy of parents and students to help move the proposal forward.

"It can move at the speed of light if we have advocacy for it," he said. "Students from other counties should contact their legislators and say this bill is a good idea. That will really get us going."



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