President Obama is set to propose a $2.5 billion tax credit for businesses that invest in local community colleges and their graduates.
The Community College Partnership Tax Credit, which will be part of the president’s fiscal 2017 budget plan unveiled Tuesday, would require businesses to donate funds for equipment, instruction or internships related to programs at local community colleges in areas such as healthcare, energy and information technology.
The $2.5 billion tax credit would be given over five years.
“Employers can define those skills and help colleges develop the curriculum that teaches them,” James Kvaal, White House deputy director of domestic policy, told Reuters.
The businesses would then hire the community college graduates — an initiative Kvaal said would help 500,000 graduates land jobs over the five years.
“Bringing together community colleges and the local employer base … really doesn’t break along party lines,” said Ted Mitchell, under secretary at the U.S. Department of Education.
The plan, like the rest of Obama’s budget, is a nonbinding prosposal for Congress to consider as they allocate spending for fiscal year 2017.
Under the plan, states would get part of the $2.5 billion tax credit money and pick which businesses and community college get selected for the program based on a competition for applications.
