In an effort to strengthen Wisconsin businesses, two Wisconsin representatives introduced the 2009 Higher Education Tax Credit Bill Tuesday.
The bill, introduced by Rep. Rich Zipperer, R-Pewaukee and Sen. Alberta Darling, R-River Hills, introduced the proposal to encourage businesses to send their employees to universities or two-year colleges to receive an increase in tax credit.
Under the proposal, businesses will receive a 50 percent tax credit on their financial contributions to employee tuition. Workers will also be able to receive the financial aid they need to attend school.
If the employee attending a university has a taxable income less than 185 percent of the federal poverty line, the tax credit for the business will increase to 75 percent, according to Zipperer.
“The bill made it through the assembly last year with bipartisan support,” Zipperer said. “But some senators didn’t pass it, and we don’t know why.”
Although the bill was introduced to the Legislature last session, it did not pass the Senate despite the support of 24 assembly members and 8 senators.
According to Zipperer, the proposal is designed to help Wisconsin workers further their education, making them more competitive in the global marketplace while helping Wisconsin businesses and improving the state’s current economic climate as well.
“It’s a win-win for everybody,” Darling spokesperson Jay Rich said. “Employers get a tax credit and employees get the help they need.”
Despite the effort to gain bipartisan support, Rep. Spencer Black, D-Madison, said he does not share the positive outlook for the bill.
Black said it is an inefficient way to provide financial aid, adding money should be given directly to students instead of business.
He saw a similar bill last year along with student representatives from the United Council of University of Wisconsin’s Students Inc. and determined it was not cost effective for the state.
“It’s been the same proposal for the past several years, and it has been rejected every year,” Black said.
The proposal will cost the state money, Black said, without providing any real aid to students. As a result, he will not be supporting the measure and added the proposal is not likely to gain the votes needed to pass the Legislature again this year.
Many businesses backed the proposal last year, including American Family Insurance, United Council of UW Students, Wisconsin Economic Development Association and the UW System, according to a joint statement released by Zipperer and Darling.
“Groups have been very supportive in the past, but they have not been contacted yet,” Zipperer said. “I have no reason to believe that they will change.”