Over 1 Million NY'ers Eligible for Schumer Authored College Tuition Tax Credit Worth Up to $2,500 per Student - Middle Class NY Families Poised to Receive $2B in Rebates

Press Release

Credit Will Be A Major Boost For Middle Class Families - For Every $1 Spent on College Tuition, Families Could Get $1 Off on Taxes, Up to $2,500 A Year

Schumer Was Original Author of College Tuition Tax Credit Set To Expire This Year - Bill Passed Through Senate Today; Will Extend Provision for Another 2 Years

Schumer: College Tuition Tax Credit Means Money in the Pocket of New Middle Class Families

Today, U.S. Senator Charles E. Schumer released a report showing that approximately 1 million New Yorkers will be eligible to take advantage of the Schumer authored $2,500 college tuition tax credit that passed the Senate this morning, for a total of $1.93 billion next year. The provision, originally included in the American Reinvestment and Recovery Act of 2009, was set to expire at the end of this year. It will now be extended through the end of 2012.

During a conference call, Schumer discussed the importance of the credit to middle class families, and the debt faced by students who are graduating into an exceptionally difficult job market.

"A college degree is increasingly important in securing a high paying job, but middle class families are strapped for cash and the cost of tuition is spiraling ever upward. That makes the extension of the college tuition tax credit so important," said Schumer. "By extending the tax credit for another two years, we will not only put thousands of dollars in the pockets of middle class Americans with kids in college, we will be providing them with the security of knowing that tuition will be a little bit more affordable not just next year, but the year after as well."

The bill, which will pass the Senate at approximately 1pm today, extends the Schumer-authored college tuition tax credit that was included in the American Recovery and Reinvestment Act of 2009. Today's move by the Senate ensures that the college tuition tax credit will be extended until 2012. Schumer's legislation, that was included in the original stimulus bill, transformed the existing HOPE tuition credit into the $2,500 American Opportunity Tax Credit. The new Schumer credit represents an overall benefit that is at least two-and-a-half times greater than the previous tuition benefits. For families with children in college but who do not have enough income tax liability to qualify for the full credit, the law provides a refund worth up to 30 percent of the credit for each student.

Middle class New Yorkers across the state will see benefits from the extension of the college tuition tax credit. Statewide, 1,026,116 million students and their families attending college in New York will receive approximately $1.93 billion in college tuition tax credits.

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