Tagged: Education Tax Credit

Oral arguments were heard Friday in a lawsuit which will determine if the state’s new education tax credit is constitutional. The state argues that for the tax credit to be considered unconstitutional, the judge has to consider first if directing money through a tax credit is the same as spending money in the budget. Next the judge will have to determine if because some parents use that money to send their kids to religious schools, does that violate the state’s constitution?

Ten North Country representatives – all Democrats - were among those who voted Wednesday to repeal the education tax credit.

Six North Country representatives – all Republicans – voted against the repeal.

As NHPR’s Sam Evans-Brown reported the law grants an 85% tax credit to businesses that donate to scholarship organizations, which give the money to students going to a private school, an out-of-district public school, or home school.

The House Ways and Means Committee heard testimony Thursday on a bill that would repeal the School Choice Scholarship Act, which passed last year. The act allows businesses to receive a tax credit when they donate scholarship money to private schools.

Many of the same arguments that were heard last session came up again this time, as lawmakers debated whether or not a tax credit for businesses that fund private and even religious schools is wise – or even constitutional.

Civil liberties groups have filed suit challenging the constitutionality of New Hampshire’s Tax Credit Scholarship law. The ACLU has teamed up with Americans United for Separation of Church and State to for the complaint.

On January 1st businesses can start getting tax breaks for donating to organizations that give public school students money toward going to a private school. But before that law has even taken effect, there are proposals to change it.

The business tax credit scholarship law was never popular with Democrats, who called it a back-door school vouchers measure. Governor-elect Maggie Hassan has said that she would try to repeal it, and a Manchester Representative, Peter Sullivan, will file a bill that would do just that.

North Country legislators were almost evenly divided about whether to override Gov. Lynch’s veto of a bill that would give tax credits for businesses that make donations to not-for-profit schools.

As NHPR has reported Lynch said “the proposed bill would siphon public money away from public schools and give it to private ones. He said the budget gaps the plan would create would have to be covered by increases in local property taxes.

New Hampshire's Legislature has voted to override a bill vetoed by Gov. John Lynch that is intended to help public school students switch to private schools.