Panel nixes tax credits for hiring Virginia graduates

Students receiving degrees from Virginia’s public colleges and universities may struggle to find employment, after a House subcommittee killed legislation that would have given small businesses a $2,500 tax credit for hiring such graduates.

House Bill 1303 was introduced by Delegate Charniele Herring, D-Alexandria, who proposed an incentive system for small businesses that hired people holding an associate’s or bachelor’s degree from a public institution of higher education in Virginia. In her eyes, small businesses are the cornerstone for moving graduates from the classroom to the real world.

“Small businesses account for more than 47 percent of employment to recent graduates, and it’s very important to provide tax incentives to encourage the hiring of our recent Virginia graduates,” Herring said.

“About 53.6 percent of recent higher education graduates have been unable to find a job, and that’s really what motivated me to pursue a way to give our students an opportunity to succeed after their education is complete.”

HB 1303 would have helped small businesses that hire Virginia public college graduates to fill new full-time jobs after Jan. 1 of this year. Those businesses would have received a $2,500 corporate income tax credit for each new full-time position. Businesses could have claimed the credit after the graduate had been employed for at least
a year. Virginia college students supported the measure.

“I believe the tax credit ensures a move in a more positive direction and will encourage small businesses to hire recent graduates and help minimize the unemployment rates we’re seeing right now,” said Alex Henery, a student representative from Radford University.

“If businesses are given a deductible to hire these graduates, then they may be more inclined to take a chance on those whose experience stems predominantly from the classroom.”

The bill set a cap of $2 million for the tax credits. The tax credit program would have automatically expired in 2015.

HB 1303 did not cover private colleges and universities in Virginia. That is the main reason why House Finance subcommittee No. 3 decided to table the bill.

Herring argued that the financial ceiling set in the bill did not make it realistic to provide tax credits for hiring graduates from private institutions.

“I thought there was a more natural nexus for public universities, and with the money accessible, it’s not an effective tool in encouraging small businesses to hire all students who graduate from a college or university in Virginia,” she said.

Delegate Joseph Johnson, D-Abingdon, was intrigued by the bill. He noted that some parents are suing colleges and universities because their children could not find employment upon graduation.

For example, Trina Thompson, a 27-year -old New York graduate, and her parents are suing Monroe College in the Bronx for the $70,000 she spent on tuition because she has been unable to find a full-time job.

“There have been numerous class-action lawsuits brought on by parents whose kids have been unable to find jobs after school,” Johnson said. “Students majoring in visual arts, history, performing arts and English, to name a few, are finding it extremely difficult to find jobs. It’s becoming a new trend here in the commonwealth and throughout the nation.”

On a voice vote of 5-0 on Friday, the subcommittee tabled HB 1303, suggesting it be revised to provide tax credits for hiring graduates from private as well as public colleges.

Reynolds CC to host sculptor Paul DiPasquale

Reynolds Community College will host Richmond sculptor Paul DiPasquale Sept. 28 as he shares his presentation “Art Talk, Why Art Matters” from 6 p.m. to 8 p.m. in the Conference Center Gallery of the Workforce Development and Conference Center on the Parham Road Campus, located at 1651 E. Parham Road in Richmond. This event is free and open to the public. > Read more.

Free children’s clothing for those in need

The Children's Clothing Closet at Highland Springs United Methodist Church will be open Saturday, Aug. 27 and Tuesday, Aug. 30 to provide free new or nearly new children's clothing for families in need, prior to the start of the school year. The Clothing Closet will be open from 10 a.m. to noon both days. The church is located at 22 North Holly Avenue. > Read more.

Weekend Top 10

For our Top 10 calendar events this weekend, click here! > Read more.


Reader Survey | Advertising | Email updates


Place an Ad | More Classifieds


FETCH a Cure’s sixth annual Mutt Strutt will take place at 1 p.m. at Deep Run Park, 9900 Ridgefield Pkwy. The walk raises funds for FETCH a Cure’s Companions in Crisis Program, which provides financial assistance to help families pay for life-saving treatments for their pets who have been diagnosed with cancer. A vendor fair with kid zone and pet demos will follow. For details, visit Full text

Your weather just got better.


Henrico's Top Teachers

The Plate