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House OKs tax credit for scholarship
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Posted on Jul 19 2005
The House of Representatives has approved a bill that aims to include the CNMI Scholarship Office among the list of recipients of tax credit contributions.
Authored by minority leader Arnold I. Palacios, House Bill 14-354 said that college students can benefit a lot if contributions are made directly to the Scholarship Office.
“Businesses and individuals are willing to assist by contributing to the CNMI Scholarship Office where they feel that the money will be used specifically for grants for students to obtain college degrees,” said Palacios.
The current law only qualifies the following institutions for tax credit donations: the Public School System, Northern Marianas College, eligible private educational institutions, Commonwealth Museum of History and Culture, and NMI Council for the Humanities.
The House, meantime, has not acted on a bill that aims to repeal the education tax credit law.
Rep. Janet U. Maratita earlier introduced House Bill 14-238 to get rid of the law, saying that the Commonwealth “loses significant revenue” because of such a measure.
She said such income could be used “to fund the pressing needs of the Commonwealth for essential services in the areas of education, public utilities, health care, and public safety.”
Under the law, private businesses or individuals can give as much as $5,000 a year to academic institutions as a form of tax credit.
