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House panel OKs teachers’ $500 tax credit measure
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Posted on May 07 2005
A House panel has recommended the passage of a bill that aims to grant classroom teachers up to $500 tax break a year.
House Education Committee chair Justo S. Quitugua said his panel approved the proposal, House Bill 14-27, which was authored by minority member Heinz S. Hofschneider.
“We support the bill. We have done our report and submitted it last session [April 28],” said Quitugua.
Quitugua earlier promised Hofschneider that the Education Committee would be able to act on the bill end of April.
Hofschneider earlier complained that the committee had been sitting on the proposal since January last year.
Meantime, Quitugua said the committee put in an “accountability clause,” which provides that the school principal must certify the amount spent by a teacher for classroom use.
H.B. 14-27 aims to provide a nonrefundable tax credit of up to $500 for teachers who spend their own money for classroom expenses. The credit would be reflected in the teachers’ wage and salary tax or earnings tax.
In a position paper submitted last year, the Public School System said it favors the passage of the teachers tax incentive bill but warns of its negative impact on local revenues.
PSS said the bill offers “a positive message to teachers for their dedication and commitment” but such a tax credit “will certainly have an impact on local revenue available for spending on funding many autonomous agencies.”
PSS said the Legislature needs to consult with the Division of Revenue on the appropriateness and timelines of the payments.
Quitugua said his panel had sought the Department of Finance’s opinion but it did not issue any.
