[Congressional Record Volume 143, Number 86 (Thursday, June 19, 1997)]
[Senate]
[Page S5959]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          EDUCATION TAX CREDIT

  Mr. FAIRCLOTH. Mr. President, I rise to speak on education, 
particularly vocational education.
  This past January, I introduced, with Senator Craig, S. 50, which 
provides a $1,500 tax credit for students at vocational and technical 
schools and community colleges. S. 50, today, has the support of 11 
other Members, including the majority leader.
  Recently, the tax credit for vocational training found a place in 
Senator Roth's budget reconciliation package.
  The provision provides a 75-percent tax credit for up to $2,000 in 
expenses at a community college. Now, for the average student spending 
around $1,500 in annual tuition and books, that amounts to a $1,125 tax 
credit. I would like to thank Senator Roth for his support of 
vocational training in the budget package.
  Under the House budget package, a student would only receive a 50-
percent credit for up to $3,000. That amounts to $1,500 for a 4-year 
student. But for community college students, who are generally of a 
lower income and are holding jobs while they are in school, it would 
only amount to $750 or less. I think it is fortunate that the Senate 
recognizes this and is going to allow a 75-percent tax credit for up to 
$2,000.
  I believe that we should give every adult American the opportunity to 
obtain the training needed to find employment. In fact, we are 
demanding that they work, so it is incumbent upon us to give them the 
opportunity to be trained to work. Most any job that a person would 
look at today requires some training, and the community college is the 
place to do it. This tax credit will enable the students to go.
  A tax credit for community college students will encourage workers in 
all age brackets to pursue an education beyond high school without 
incurring the expensive cost of attending a 4-year college. By 
improving the training and skills of our workers, we will create a 
better job climate and a better manufacturing and technological 
society.
  As State commerce secretary for North Carolina, I was able to bring 
more than 500,000 jobs into the State, and practically all of them 
required additional training or retraining. By strengthening the 
community college system and offering custom training for workers in a 
specific skill for the last 8 years, North Carolina has been among the 
top three States in new plant locations. We have been able to develop a 
film industry that brings $2.5 billion a year to my State. The answer 
to economic growth is to be able to train people, and the community 
college system is the only entity I have ever seen that could really 
train them and put them on the job.
  As we begin to see the impact of the changes made to welfare in the 
last Congress, more and more people are going to be taken off welfare 
and they must work, and we must train them if they are going to work.
  Many people who go to the community colleges are going back for 
retraining. They are not studying to get an entirely new degree. People 
are expected to keep up with new technology, and industry is demanding 
that they do. The tax credit will allow these individuals to receive 
training so they can quickly return to the work force.
  Again, I want to thank Senator Roth for his support, as well as the 
11 Senators that have helped me to bring this bill to this point. I 
certainly hope we will retain the 75-percent credit as the package 
moves through the process and through the conference.
  I thank the Chair.

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