Obama tax credit proposal could provide free tuition in Florida

By Scott Travis | South Florida Sun-Sentinel

November 17, 2008

College tuition costs for Florida residents could become significantly cheaper, or even free, if a campaign proposal from president-elect Barack Obama becomes law.

During his campaign, Obama and his running mate, Joe Biden, said they planned to create a new American Opportunity Tax Credit, which would be worth $4,000 a year. In exchange, students would have to annually complete 100 hours of community service.

The cost of public universities in Florida is roughly $3,600 to $4,000 per year. This means students here might be able to get free tuition for four years. It's unclear how the proposal would affect pre-paid tuition or Bright Futures scholarships.

Congress would also have to approve the proposal.

"Whenever Congress passes a bill, there are always regulations that go with it, and it's possible it could be scaled back," said David Hawkins, director of public policy and research for the National Association for College Admission Counseling.

The plan excites students such as Sapna Talati, 20, of Boca Raton, a junior at Florida Atlantic University, who is also president of the College Democrats.

"I think under the current administration, students don't feel like they're receiving anything back," Talati said. "If students receive a tax credit for carrying out civic duty, it might motivate them to become better members of the community."

Under Obama's plan, tax credits would be fully refundable, so low-income families who don't pay enough in taxes to benefit from the full tax credit could still get $4,000.

During the campaign it was estimated the cost of the tax credits at $10 billion a year.

Information from The Associated Press supplemented this report.

Scott Travis can be reached at stravis@SunSentinel.com or 561-243-6637.