Letters to the Editor

Tax Relief Act: How it affects you

At the end of last year, President Obama signed the 2010 Tax Relief Act into law. A sweeping legislative package, the bill includes, among other items, a two-year extension of the Bush-era tax cuts, new incentives for business owners to invest in equipment, and a host of extended tax breaks for individuals and businesses.

The key provisions of the new legislation are complicated, and they will likely compel you to take another look at tax planning — not only for 2010, but for 2011 and 2012 as well. In order to take full advantage of the new provisions, it’s important to understand how these changes might modify your tax strategies.

A far-reaching legislative effort, the Tax Relief Act has averted big tax hikes that would have hit millions of people starting at the beginning of this year. Under the new law, individual income tax brackets for ordinary income will remain the same in 2011 and 2012. You will also continue to have an opportunity to take an itemized deduction for state and local sales taxes in lieu of state and local income taxes through 2011.

Other individual incentives include:

• A two-year extension on several income tax credits, including the Child Tax Credit, the Earned Income Tax Credit, the Adoption Tax Credit, the Dependent Care Credit and the American Opportunity Tax Credit.

• An extension on the provision that permits tax-free distributions to charity from an Individual Retirement Account (IRA) of up to $100,000 per taxpayer, per tax year.

In an effort to encourage business productivity, the Tax Relief Act also includes several incentives for business owners. In order to increase equipment purchases, for example, the new legislation allows you to write off 100 percent of qualifying assets purchased and placed in service between Sept. 9, 2010 and Dec. 31, 2011. For those purchased and placed in 2012, a 50 percent bonus depreciation applies. With no limits on the amount of capital expenses allowed or on capital income, the extension represents a great opportunity to dramatically cut your 2011 and 2012 business taxes and free up operational cash in the short-term.

Other business provisions include:

• An extension of the Research and Development Tax Credit.

• An extension of the depreciation rules regarding Qualified Leasehold Improvements made by taxpayers.

• A 100 percent exclusion of gain from the sale of small business stock for qualifying stock acquired before Jan. 1, 2012.

• An extension of Energy Credits for specified facilities, manufacturers and builders.

These represent but a few of the provisions included in the bill, many of which are only valid for two years, so talking to a tax professional to review your specific situation can help you determine what particular planning strategy is right for you.

—Howard Pulker

Vice president, senior portfolio manager

Central Florida affiliate of Fifth Third Bank

Pre-K education a must

As I sit and listen to Liz Carroll talk about the old days, I marvel at this almost-90-year-old woman’s enthusiasm and dedication to early childhood education. In 1961, Liz founded the preschool now called the Center for Early Childhood Education at the First Presbyterian Church of Maitland. For years, she served as the school’s director and on the teaching staff. As a current board member, Liz still plays an active role in the school she created — the oldest preschool in Maitland.

The CECE owes its longevity largely to Liz’s vision. A pioneer in the field of early childhood education, Liz was always keenly aware of the importance of those few short preschool years. She knew that children’s minds form profoundly during this period, and she felt sure that a good educational environment was critical to a student’s long-term success.

Liz got the opportunity to test her ideas when Martin Marietta brought many young families to the Maitland/Winter Park area in the late 1950s. Liz remembers talking with developer Charles Clayton about his plans for a housing development called Dommerich Estates, along with a brand-new elementary school to serve the growing community. Liz looked over the plans and realized that this was her opportunity. She started working on her dream of educating young children … and she was wildly successful. By 1964, when Dommerich Elementary was built, Liz had already shepherded 25 preschoolers through the kindergarten level. These students were amply prepared to start first grade at Maitland’s beautiful new school. Liz continued her efforts as the years went by, eventually dedicating 30 years of her life to the development of the young child.

When Liz started the preschool, her work was considered groundbreaking. Today, however, research has finally caught up with what Liz knew 50 years ago. Early childhood education is now viewed universally as an important aspect of a child’s school experience. Indeed, our state decided to prioritize this opportunity when it created the Voluntary Pre-Kindergarten program in 2005. This program offers free pre-K education to all 4-year-old children living in Florida. By doing so, it exposes children to the emotional, social, physical and cognitive challenges they will face when they formally enter the school system.

The state of Florida did not create this wonderful educational opportunity just to be nice. It is striving to ready all children, regardless of their family income level, for the intense full-day kindergarten experience. Legislators recognize that children who have been preparing themselves for this moment are much more likely to succeed throughout their educational years. Children who enter kindergarten without having attended a preschool program, on the other hand, already have a gap in their education. This gap can continue to widen throughout these students’ school years.

It pains Liz to hear of children who are not taking advantage of this wonderful educational opportunity for all children regardless of background, income level, race, sex, religious affiliation or language. It pains me equally — and as the recently appointed associate director of the CECE, I plan to do something about this problem. As the lucky recipient of Liz’s legacy, I will do my best to ensure that all children in my care receive the best early childhood education possible. I will also do my best to spread the word about this incredible educational experience.

—Linda Altizer

Associate Director

Center for Early Childhood Education,

First Presbyterian Church of Maitland

fpcmaitland.org/cece-preschool