School Readiness Tax Credit refunds donations dollar-for-dollar
November 04, 2016
School Readiness Tax Credit refunds donations dollar for dollar
Children’s Coalition for Northeast Louisiana is one of six such agencies in the state. Last year 140 businesses from the northeastern Louisiana participated in the School Readiness Tax Credit Program.
School Readiness Tax Credits were one of the few tax credits untouched by last year’s budget cuts because they allow the state to draw down much-needed federal dollars. “The School Readiness Tax Credits are some of the most noteworthy and universal beneficial tax credits ever passed in Louisiana,” said state Rep. Katrina Jackson. “It was important that we holistically preserved these tax credits while the Legislature trimmed others that do not benefit all Louisianians. The School Readiness Tax Credits allow our children to be better prepared while promoting economic development and promoting parents to work while their children are provided for.”
Tom Nicholson, CEO of Strauss Interests, said the program is so easy he almost didn’t believe it. “I went to our CPAs and I said, ‘Does this thing really work like this? Can it be this simple?’ And they assured me that, in fact, it was,” he said.
Companies can donate up to $5,000 and get it back as a credit against that company’s state income taxes or as a direct rebate from the state treasury. Companies with multiple tax ID numbers can donate $5,000 for each corporation.
“Once we assured ourselves that in fact, that’s how it actually worked, we had several entities give the maximum $5,000 amount and have done so for the last several years now,” he said. “It’s been a useful source of funds for the Children’s Coalition, and they make good use of it, too.”
This past year the Children’s Coalition invested these tax credits locally in programs and people that support early care and education for children in northeast Louisiana. What that looks like in Ouachita Parish is Baby Bayou—a new brain-based learning exhibit for infants and toddlers at the Northeast Louisiana Children’s Museum; VROOM—a free program that empowers parents to model brain building activities for children 0-5; professional development events and classes for early childhood educators, regional conferences in support of early learning and grants and stipends to child care centers that accept at-risk children. In addition, these funds support community-wide events like Family Fun Day at Forsythe Park, All Children’s Day at the River Market, the What Works Conference at the Monroe Civic Center, as well as a region-wide media campaign to raise awareness of the importance of quality early child care. “
“These tax credits allow the Coalition to be nimble and quick in responding to community need and sustain early childhood programs that are no longer funded by the state—but should be,” said Children’s Coalition Development Director, Lindsey Murry. Current programs supported by School Readiness Tax Credits include the Louisiana Shared Resources website (LAASR) for child care centers, Al’s Caring Pals in Family Child Care Homes, Parenting classes in the community and Child Development classes at the Children’s Museum, and early literacy programs at the Monroe Housing Authority. “Instead of writing a check to the government, you have a chance to invest your money locally in support of our children,” added Ms. Murry.
Nicholson said that CPAs should be familiar with how to enroll clients or be able to fill out the brief form. “Other than that, it’s easy as writing a check,” he said.
Children’s Coalition for Northeast Louisiana is one of six such agencies in the state. Last year 140 businesses from the northeastern Louisiana participated in the School Readiness Tax Credit Program.
School Readiness Tax Credits were one of the few tax credits untouched by last year’s budget cuts because they allow the state to draw down much-needed federal dollars. “The School Readiness Tax Credits are some of the most noteworthy and universal beneficial tax credits ever passed in Louisiana,” said state Rep. Katrina Jackson. “It was important that we holistically preserved these tax credits while the Legislature trimmed others that do not benefit all Louisianians. The School Readiness Tax Credits allow our children to be better prepared while promoting economic development and promoting parents to work while their children are provided for.”
Tom Nicholson, CEO of Strauss Interests, said the program is so easy he almost didn’t believe it. “I went to our CPAs and I said, ‘Does this thing really work like this? Can it be this simple?’ And they assured me that, in fact, it was,” he said.
Companies can donate up to $5,000 and get it back as a credit against that company’s state income taxes or as a direct rebate from the state treasury. Companies with multiple tax ID numbers can donate $5,000 for each corporation.
“Once we assured ourselves that in fact, that’s how it actually worked, we had several entities give the maximum $5,000 amount and have done so for the last several years now,” he said. “It’s been a useful source of funds for the Children’s Coalition, and they make good use of it, too.”
This past year the Children’s Coalition invested these tax credits locally in programs and people that support early care and education for children in northeast Louisiana. What that looks like in Ouachita Parish is Baby Bayou—a new brain-based learning exhibit for infants and toddlers at the Northeast Louisiana Children’s Museum; VROOM—a free program that empowers parents to model brain building activities for children 0-5; professional development events and classes for early childhood educators, regional conferences in support of early learning and grants and stipends to child care centers that accept at-risk children. In addition, these funds support community-wide events like Family Fun Day at Forsythe Park, All Children’s Day at the River Market, the What Works Conference at the Monroe Civic Center, as well as a region-wide media campaign to raise awareness of the importance of quality early child care. “
“These tax credits allow the Coalition to be nimble and quick in responding to community need and sustain early childhood programs that are no longer funded by the state—but should be,” said Children’s Coalition Development Director, Lindsey Murry. Current programs supported by School Readiness Tax Credits include the Louisiana Shared Resources website (LAASR) for child care centers, Al’s Caring Pals in Family Child Care Homes, Parenting classes in the community and Child Development classes at the Children’s Museum, and early literacy programs at the Monroe Housing Authority. “Instead of writing a check to the government, you have a chance to invest your money locally in support of our children,” added Ms. Murry.
Nicholson said that CPAs should be familiar with how to enroll clients or be able to fill out the brief form. “Other than that, it’s easy as writing a check,” he said.
