U.S President Barack Obama to Propose $2.5 Billion Community College Partnership Tax Credit

ObamaOn Friday, Obama administration officials said that the U.S President will propose a $2.5 billion tax credit spread out over five years for businesses which invest in local community college program and hire graduates from the same. Community College Partnership Tax Credit, is what it is being called. According to it, businesses would require donating funds for instruction, equipment or internships that are connected to the programs in designed for healthcare, information technology and energy sectors.

Employers hiring students from such kind of programs will gain a one-time, $5,000 tax credit for each individual whom they hire.

On Tuesday, when the president's fiscal 2017 budget is announced, this program is expected to be formally proposed. It is mainly aimed at supporting the educational offerings in community colleges and also for assisting businesses to find required high-skilled workers in those areas.

White House deputy director of domestic policy, James Kvaal said, "Employers can define those skills and help colleges develop the curriculum that teaches them." According to his estimates, in five years this initiative will produce 500,000 highly trained graduates.

The program is expected to work well for the community colleges as they will get the required capital investment and will also give a push to businesses which will get back their investments when they hire graduates from these colleges, through the tax credits.