Dressed-up tuition credit bill expected today

HB271 would put restrictions on tax credits, scholarships

Published: Wednesday, Feb. 4 2004 7:17 a.m. MST

A bill offering tuition tax credits was expected to be made public today, with a little dressing-up to make it attractive to swing votes.

HB271, sponsored by Rep. Jim Ferrin, R-Orem, would:

  • Put a $3,000 cap on the combined amount of the tuition tax credit and scholarship money.

  • Prevent taxpayers from claiming a private school scholarship donation as a deduction and credit on state income taxes.

  • Make students who go to private school but attend a public school for a single class ineligible for the tax credits.

  • Allow the full tax credit regardless what is owed in income taxes.

"What (Rep. Ferrin) I think has done is try to answer the questions and concerns that have been raised about previous bills," said Royce Van Tassell, director of Parents for Choice in Education. "There's been some concern in the past that previous bills would only be available to the wealthy, and it's very clear . . . that this bill is designed to provide an opportunity to all of Utah's families to have a choice about where their children go to school."

Still, Ferrin's bill isn't expected to be any less controversial than those debated over the past three years.

"Look at the history. They say, we'll continue to tweak this and tweak this and tweak this until people will swallow it," Utah Education Association President Pat Rusk said after viewing a copy of bill highlights obtained by the Deseret Morning News. "And I don't believe it's any different. I believe the harm it will do to public schools far outweighs (any benefits)."

Tuition tax credits have been vehemently opposed by public school groups as a raid on public education dollars and a subsidy for private industry.

Supporters, however, view them as a way to give choices for wealthy and low-income parents to choose the school that best fits their child's needs in a more cost-effective way for the state.

The Senate last year approved tuition tax credits, wrapped in an education reform bill that included a $90 million tax increase for public schools. But the House removed credits and the $90 million before passing SB154, avoiding a vote on tuition tax credits for the third consecutive year.

The financial impact of this year's bill has not yet been determined.

Ferrin's bill is two-pronged.

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