Calling a college education a necessity priced as a luxury, New York Sen. Chuck Schumer said he will introduce legislation this week to extend a college tax credit for the middle class that is set to expire in 2017.
He also wants to hike the income level for qualifying families from $180,000 to $200,000 and increase the credit from $2,500 to $3,000. The American Opportunity Tax Credit has been in place since 2009.
“This is critical, critical, critical for New York State’s middle class to advance,” Schumer said in a conference call Wednesday.
Credits come off the bottom line of the tax bill, as opposed to deductions which reduce taxable income.
The average in-state tuition for public colleges increased $300 to $9,100 in 2014, Schumer said, citing the College Board. The credit could help the families of more than 51,000 college students enrolled in school in Westchester and Rockland, he said, with the tax impact totaling more than $150 million.
Photo: Sen. Charles Schumer