Tax Credits for Children with Special Needs

This is a wonderful bill that helps parents of children with special needs take control and participate in their child's education

May 18, 2008

WAKE COUNTY NC NEWS -- House Bill 388 "Tax Credits for Children with Special Needs," allows an individual income tax credit for part of the expense of each eligible child with special needs who is educated in a nonpublic school or in a public school where tuition is charged for the student's enrollment. The education expenses' credit is equal to the amount paid for tuition and other educational and therapeutic expenses, not to exceed $3,000 per semester. House Bill 388 is expected to have its second reading in the North Carolina House of Representatives this general assembly 2008 session. This is a wonderful bill that helps parents of children with special needs take control and participate in their child's education, by allowing them to choose the most appropriate school for their child's education. Furthermore, House Bill 388 has bipartisan support, and is sponsored by NC House Representatives:

• Representative Rick Glazier (Dem) of Cumberland County
• Representative Marvin W. Lucas (Dem) of Cumberland County
• Representative Paul Stam (Rep), of Wake County
• Representative Laura I. Wiley (Rep), of Guilford County

Therefore, this bill needs your support, and it is recommended that you urge your House Representative to back House Bill 388. North Carolina Republican House Leader, Paul "Skip" Stam wrote the following presentation for House Bill 388:

Tax Credits for Children with Special Needs (HB 388)

Parents of special needs children are examining their educational options and are finding out that they have very few. All families, like the Petruk family in Charlotte, want their child to receive an appropriate and meaningful education. What the public classroom is able to offer may be less than the "best opportunity" for success. Their son's placement in a classroom with 23 other special needs children leaves little time for the one on one instructional and physical environment needs that are necessary for his specialized learning requirements. This problem is in no way unique to the Petruk family. It is a sobering fact for many of our families that have children with exceptional learning needs. It is even more disheartening for these families to know there are non-public educational opportunities and services that are structured specifically for their child's particular disability but they are unable to enroll their child because of financial limitations. The price is simply too high.

Fortunately, there is a remedy (HB 388) which provides a win-win situation, allowing tax credits for children with special needs who are educated privately. This bill will enable parents to enroll their children in private (or home) schools by allowing the parents to receive a $3,000 tax credit per semester if their child is eligible. That cost would substantially reduce the burden the family would otherwise endure. The parents win by not being unduly financially burdened by the cost of their child's education. The child wins by receiving an education in a setting where his or her needs can be more properly addressed. This is not for all such children but it is the answer for some children with special needs.

The state will also win with tax credits. In 2004-2005 the average expenditure for each child in public school was over $8,100 per year. With tax credits for special needs (who are the most expensive to educate) the government would actually save thousands of dollars if a family decided to use the program. Estimates by fiscal research show that a tax credit would cost the state of North Carolina a couple million dollars while saving counties about $6 million per year, a net gain to the government.

It is difficult to imagine that anyone would lose with this bill. Families of students with special needs will finally get the help that they need. About 3,000 students with special needs will be provided with what they need to become the best citizens that they can be. The public school system will be able to save time, energy, and resources. The taxpayers will be able to see their hard earned money more efficiently and productively spent.

The Civitas Institute conducted a poll asking: "Do you support tax credits for parents of children with special needs so they can be sent to private schools if it would not cost government any additional funding?" Of the 800 respondents 83% responded in the affirmative, 10% disapproved with another 6% not sure. The poll included people of all political parties and philosophical persuasions. The people of North Carolina are overwhelmingly in support of helping children with special needs.

Tax credits for children with special needs will show that the state of North Carolina is serious about education for the children who need it the most.

Representative Paul Stam

North Carolina Republican House Leader, Paul "Skip" Stam is an emotional stirring writer as well as an accomplished speaker. On May 13, 2008, At the opening of this year's General Assembly 2008 regular session, Representative Stam gave an introductory speech to the NC House of Representatives introducing Senate Republican Leader Phil Berger and GOP nominee for Governor, Mayor Pat McCrory, to the floor, this amazing speech which was only skimmed over by main stream media. Go House Bill 388!

Published by:
Rob Cross