Brown backs new college tax credit bill

Ohio Sen. Sherrod Brown joined a crowd (eight others) of Democratic senators today to introduce the Higher Education Opportunity Act, which would overhaul college tuition tax provisions to create one streamlined, easy-to-understand credit.

Under this legislation, the existing HOPE and Lifetime Learning credits and the above-the-line college tuition tax deduction into one $2,500 credit, simplifying the current system of benefits, which lawmakers say have too many rules and regulations for most families to deal with.

The new credit will cover 100 percent of the first $1,000 in college expenses; 50 percent of the next $2,000; and 20 percent of the next $2,500, for a maximum credit of $2,500. The bill would provide assistance through a different formula to community college students, whose costs are lower.

Those who make more than $70,000 or couples who earn more than $140,000 together would get less. Those who earn more than $90,000 or couples who make more than $180,000 combined would not be eligible.

“The cost of college tuition at a public school in Ohio has jumped 89 percent since 2000,” Brown said. “All students, if they want to, should have the opportunity to go to college. Expanding and simplifying college tax credits are important steps toward supporting middle class families throughout the nation.”

Additionally, the consolidated credit will cover up to 50 percent on some textbooks for a maximum of $250. The credit can be claimed for both graduate and undergraduate education and can be claimed for up to three students in a household each year.