Marianas Variety

Last updateSat, 07 Dec 2019 12am

Headlines:

     

     

     

     

     

    Saturday, December 7, 2019-11:52:43A.M.

     

     

     

     

     

Font Size

Settings

BOE, PSS support bill to increase educational tax credit

THE Board of Education and the Public School System “wholeheartedly support” a bill that proposes to increase the maximum Education Tax Credit or ETC from $5,000 to $10,000 in any one year.

Under the ETC program, “a person may take cash contributions made during the tax year to qualifying educational institutions as a nonrefundable credit against the tax imposed by 4 CMC § 1201 (Wage and Salary Tax) or 4 CMC § 1202 (Earnings Tax).”

Donald Manglona

Authored by Rep. Donald Manglona, House Bill 21-84 has been referred to the House Ways and Means Committee.

In an interview, he said his proposal would allow schools and other educational institutions like libraries to receive more ETC donations that can fund the needed repair of their buildings and other facilities.

Manglona said his bill, if enacted into law, will be in effect for a period of five years only. After five years, the maximum ETC credit reverts to $5,000.

In his written comment on H.B. 21-84, acting BOE Chairman Herman M. Atalig thanked House Committee on Ways and Means Chairman Ivan Blanco “for your continued support of the Public School System and its financial needs.”

He said the board and PSS are “wholeheartedly in support” of the bill.

“As you know, PSS has been pursuing multiple avenues to increase its funding and we are very grateful to have yet another potential revenue source in the form of education tax credits,” Atalig said.

“We believe that this bill will both benefit PSS and the CNMI business community,” he added.

Atalig said additional ETC donations will help PSS recover from the damage left behind by Super Typhoon Yutu and meet its other financial obligations.

He added, “Education tax credit is a step in the right direction, but it should be noted that any amount received under this bill does not reduce or diminish the government’s obligation to fund PSS with no less than 25 percent of its general revenues.”