News Item

	Related Documents Obama School Construction Letter

U.S. Rep. Bob Etheridge (D-Lillington) today asked President-elect Barack Obama to include his proposal to provide tax credits to fund local school construction in the economic recovery plan the President-elect is crafting to create and save U.S. jobs. Americans could be put to work on school construction projects as early as 30 days after the legislation becomes law, creating an immediate economic benefit.

“We must take bold steps to create jobs and make investments that provide a foundation for the lasting change our economy needs,” said Etheridge. “One of those steps should be a significant investment in our nation’s schools, which will provide jobs in our communities, spur local economic activity, and create world-class schools to educate those who will contribute to our country’s future success.”

In a letter sent today, Etheridge asked President-elect Obama to include The America’s Better Classrooms Act of 2007, a bill Etheridge introduced with House Ways and Means Committee Chairman Charles Rangel, as part of the jobs creation plan he is crafting. The ABCs Act would provide tax-free zero-interest school construction and modernization bonds to states and local communities. The federal government would provide tax credits to the bond holder for the interest normally paid on a bond. State and local governments would only have to pay back the principal, meaning funds used to pay bond interest would be freed for other education needs.

For each $1,000 of school bonds, states or local school districts would save as much as $500 in total payments. The bill would provide for $25 billion over the next two fiscal years for zero-interest school modernization bonds.

North Carolina would receive $448 million under Etheridge’s proposal. School enrollment has increased almost 30 percent in North Carolina during the last decade.

Etheridge introduced similar legislation in his first term in Congress in 1997. In December Etheridge was appointed to be North Carolina’s only member of Congress to serve on the House Committee on Ways and Means in the 111th Congress, which has jurisdiction over Etheridge’s school construction tax credit proposal.

-30-