Vetoed by Governor Steve Bullock

Vote Smart's Synopsis:

Vote to pass a bill that establishes an income tax credit to an individual or corporation for donations to a charitable education organization.

Highlights:

• Authorizes an individual or corporation to claim an income tax credit for donations to a “student scholarship organization” or “educational improvement organization” as follows (Secs. 9 & 10):
• A tax credit equal to 40 percent of the donation for an individual; and
• A tax credit equal to 20 percent of the donation for a corporation.

• Defines “student scholarship organization” as a charitable organization that meets requirements including, but not limited to, the following requirements (Sec. 2): 
• The organization allocates at least 90 percent of its annual revenue to students for enrollment in an accredited non-public school; and
• The organization provides scholarships to students without limiting access to 1 education provider.

• Defines “educational improvement organization” as a charitable organization that meets requirements including, but not limited to, the following requirements (Sec. 3):
• The organization contributes at least 90 percent of its annual contributions to public schools as grants for innovative educational programs; and
• The organization provides grants to more than 1 public school and 1 public school district.

• Limits the total amount of individual tax credit to 50 percent of the individual’s tax liability (Sec. 10).

• Limits the total amount of the tax credit for an individual or corporation to $2.5 million (Sec. 10).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes an income tax credit to an individual or corporation for donations to a charitable education organization.

Highlights:

• Authorizes an individual or corporation to claim an income tax credit for donations to a “student scholarship organization” or “educational improvement organization” as follows (Secs. 9 & 10):
• A tax credit equal to 40 percent of the donation for an individual; and
• A tax credit equal to 20 percent of the donation for a corporation.

• Defines “student scholarship organization” as a charitable organization that meets requirements including, but not limited to, the following requirements (Sec. 2): 
• The organization allocates at least 90 percent of its annual revenue to students for enrollment in an accredited non-public school; and
• The organization provides scholarships to students without limiting access to 1 education provider.

• Defines “educational improvement organization” as a charitable organization that meets requirements including, but not limited to, the following requirements (Sec. 3):
• The organization contributes at least 90 percent of its annual contributions to public schools as grants for innovative educational programs; and
• The organization provides grants to more than 1 public school and 1 public school district.

• Limits the total amount of individual tax credit to 50 percent of the individual’s tax liability (Sec. 10).

• Limits the total amount of the tax credit for an individual or corporation to $2.5 million (Sec. 10).

Full Bill Text