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2012 SESSION

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SB 241 Tax credits; businesses providing assistance to low-income families, etc., in private schools.

Introduced by: Mark D. Obenshain | all patrons    ...    notes | add to my profiles

SUMMARY AS INTRODUCED:

Tax credits; assistance to low-income families, scholarships for K through 12 students attending private schools.  Establishes a credit beginning in taxable year 2012 for certain business entities making monetary donations to nonprofit organizations providing education improvement scholarships to students whose family's annual household income is not in excess of 300 percent of the current poverty guidelines and certain students with disabilities, in order for them to attend nonpublic elementary or secondary schools. Nonprofit organizations to which donations are made would be required to distribute at least 90 percent of their tax-credit-derived funds in the form of scholarships to such students. The credit would equal 84 percent of the donation made by the business entity and any unused credit for the taxable year would be refundable. There is an annual cap of $50 million in tax credits for the scholarship program. The Department of Education would administer the tax credit program.

The bill also expands the current Neighborhood Assistance Act Tax Credit program by increasing the tax credit percentage from 40 to 64 percent; expanding the eligibility criteria for programs qualifying for tax credits to encompass programs providing services to certain students with disabilities and individuals whose family's annual household income is not in excess of 300 percent of the poverty guidelines; and repealing the July 1, 2014, sunset for the program. Current law provides that programs qualifying for tax credits must provide services to individuals whose family's annual household income is not in excess of 200 percent of the current poverty guidelines.

The bill was incorporated into SB 131.


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