Create a free Diverse: Issues In Higher Education account to continue reading. Already have an account? Enter your email to access the article.

New Fund for Low-Income California Students Enables Donor Tax Breaks

 

Californians have a week left to make the most of a newly-enacted tax incentive program expected to boost funding of the popular Cal Grant B Access Awards for low-income college students. Individuals and businesses who contribute to the new College Access Tax Credit Fund by the end of the year can take advantage of a tax credit equal to 60 percent of their donation.

That means a $1,000 donation to the fund enables a California taxpayer or firm to reduce his or her state tax bill by $600. The program continues as a 55 percent state tax credit in 2015 and a 50 percent state tax credit in 2016. In addition, taxpayers can deduct their donation as a charitable contribution on their federal income taxes.

California officials are predicting the College Access Tax Credit Fund may expand the Cal Grant B Access Award from $1,648 per student this academic year to as much as $3,000 to $5,000 over the next three years. The Cal Grant B Access Awards currently provide funds for nearly 197,000 low-income students and helps pay for books, housing, transportation, child care, and other costs related to attending college.

“As Californians, we have a new opportunity to increase college access and affordability for nearly 200,000 low-income students while saving on your taxes. … This tax credit is unlike any ever offered,” Calif. State Senator Kevin de Leon (D) said in a video statement.

De Leon, who is also the Senate President Pro Tempore in the California legislature, had sponsored the Senate legislation, which Governor Jerry Brown this past fall signed into law to authorize the College Access Tax Credit Fund program. The state is awarding up to $500 million in tax credits in 2014 and as of December 18 nearly $497 million in tax credits were still available.

“I challenge all Californians to contribute and make the future brighter by donating to the College Access Tax Credit Fund. … I know if it weren’t for financial aid programs like the Cal Grant program, I wouldn’t be here today” as a leader in the California senate,” de Leon said.

The trusted source for all job seekers
We have an extensive variety of listings for both academic and non-academic positions at postsecondary institutions.
Read More
The trusted source for all job seekers