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Aug

20

[video] Mandel, Goyal to propose tax credits to Ohio college grads who stay in-state


More great coverage from Marc Kovac at the Capital Blog.

The press release from State Rep. Mandel (R, Lyndhurst) and Jay Goyal (D, Mansfield):

COLUMBUS – State Representatives Josh Mandel (R- Lyndhurst) and Jay Goyal (D- Mansfield) announced today they will soon introduce legislation to offer state income tax credits to Ohio-educated graduates in return for their commitment to stay and work in Ohio.

Under the legislation, graduates would be awarded a nonrefundable tax credit, based on the type of degree they earn. Those graduates would commit to staying in Ohio for at least five years, helping the state retain its bright young minds and building a skilled workforce to attract new business investment.

“Thousands of people are educated here in Ohio, then leave for what they see as greener pastures as they set out to start their careers,” Goyal said. “We need to provide all the incentives we can to make Ohio a destination rather than a pit stop for the innovative, creative young leaders our great colleges and universities produce.”

The legislation would award the following state income tax credits, generally to be claimed over a ten-year period:
·         Associate’s degree: $5,000
·         Bachelor’s degree: $20,000
·         Master’s degree or higher: $30,000

“I was born and raised here in Ohio and have decided to stay here to work, get married and eventually raise my family,” Mandel said. “Unfortunately, many of my peers from growing up are spread across the country. We need bold action so Ohio can reverse this exodus of young talent.”

Goyal and Mandel said each additional graduate retained through this program would generate an estimated $500,000 in state and local tax revenues over a 25-year span – a 2000-percent return on this tax credit investment. They see this incentive program as both a boon to graduates worried about college loan debt and a labor cost savings for business.

The legislation is currently in the process of being drafted.

First, I’d love to know who is drafting the legislation – often times but by no means every time, lobby groups submit their versions.

Second, would all majors be treated the same?

Third, what interim requirements and monitoring (substantiation of residence on Ohio) would be devised to ensure that the work is benefitting Ohio and Ohioans?

I’m sure I could think of more, but I’ll stop there for now.

Oh – one more – where’s the money coming from?

I love loan forgiveness programs and have written about that at the federal level several times.  So in theory, there’s promise in this idea.

But, as usual, the devil is in the details and in whomever is backing this proposal. I look forward to learning more from more objective sources than the potential sponsors.

In the meantime, head over to Marc’s blog and check out the three videos of Mandel and Goyal making the announcement – doesn’t appear there’s anyone there, but it is August 20 and we’ve got some serious concerns about a favored NE Ohio congresswoman.  Would be nice to see these young men issue a statement about that right about now.

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By Jill Miller Zimon at 5:26 pm August 20th, 2008 in Campaigning, Education, OH17, Ohio, Parenting, Politics, Youth 

Comments

4 Responses to “[video] Mandel, Goyal to propose tax credits to Ohio college grads who stay in-state”

  1. 1 Mandel and Goyal propose education tax credits for Ohio students | Cleveland Real Estate News on August 21st, 2008 12:03 pm

    [...] info. The credits range from $5000 for an Associates Degree to $30,000 for a Masters. I see that Jill of WLST has already written about this in her usual questioning fashion so check out her blog for [...]

  2. 2 Carole Cohen on August 21st, 2008 12:04 pm

    Good coverage, which I discovered as I wrote my post lol. Hopefully in the course of discussing this idea they can come up with something that is more than just giving the money without true job availability for the students.

  3. 3 Columbuser.com » Tax credit shenanigans on August 21st, 2008 12:41 pm

    [...] A press release from State Rep. Mandel (R, Lyndhurst) and Jay Goyal (D, Mansfield): COLUMBUS – State Representatives Josh Mandel (R- Lyndhurst) and Jay Goyal (D- Mansfield) announced today they will soon introduce legislation to offer state income tax credits to Ohio-educated graduates in return for their commitment to stay and work in Ohio. [...]

  4. 4 Gordon on August 21st, 2008 4:27 pm

    You can give out all the tax credits you want but if the business environment is in the toilet, tax credits are meaningless.

    Who can use a tax credit when they don’t have a job?

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