Signed by Governor Robert Bentley

Vote Smart's Synopsis:

Vote to adopt a conference report that increases the cumulative cap on tax credits available to taxpayers who provide contributions to scholarship granting organizations.

Highlights:

• Increases the cumulative cap on tax credits that may be claimed by taxpayers who contribute to scholarship granting organizations from $25 million to $30 million annually (Sec. 1).

• Increases the cap on tax credits that may be claimed by an individual who contributes to scholarship granting organizations from $7,500 to $50,000 annually (Sec. 1).

• Prohibits an individual from claiming a tax credit for a donation that is made under the condition that the scholarship is granted to a particular school or student (Sec. 1).

• Requires educational scholarships to be provided only to “eligible students” who are zoned to attend a “failing school” so that the student can attend a qualifying school (Sec. 1).

• Amends the definition of “eligible student” to include individuals who are members of a family whose total annual income does not exceed 185 percent of the federal poverty level (Sec. 1).

• Defines a “failing school” as a public school that is listed in the lowest 6 percent of public schools based on the state standardized assessments and that does not serve a special population of students (Sec. 1). 

• Specifies that an student whose family’s annual income exceeds 185 percent of the federal poverty level and has already received a scholarship shall remain eligible to receive a scholarship unless the annual income of the student exceeds 275 percent of the federal poverty level (Sec. 1).

• Specifies that a scholarship given to an eligible student to attend a qualifying school will not exceed the following amounts in one academic year (Sec. 1):
• A grant of $6,000 for an elementary student;
• A grant of $8,000 for a middle school student; and
• A grant of $10,000 for a high school student.

• Requires a scholarship granting organization to publicly report certain information to the Department of Revenue by the 15th day after the close of each calendar quarter, including, but not limited to the following information (Sec. 1):
• The total number of scholarships awarded and funded;
• The total amount of funds paid to each qualifying school; and
• The total number of scholarship recipients enrolled in each qualifying school.

• Requires any scholarship funds that are not used for educational scholarships by the end of the academic year to be turned over to the State Department of Education for its At-Risk Student Program to support underperforming schools (Sec. 1).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that increases the cumulative cap on tax credits available to taxpayers who provide contributions to scholarship granting organizations.

Highlights:

• Increases the cumulative cap of tax credits that may be claimed by taxpayers who contribute to scholarship granting organizations from $25 million to $30 million annually (Sec. 1).

• Prohibits an individual from claiming a tax credit for a donation that is made under the condition that the scholarship is granted to a particular school or student (Sec. 1).

• Requires educational scholarships to be provided only to “eligible students” who are zoned to attend a “failing school” so that the student can attend a qualifying school (Sec. 1).

• Amends the definition of “eligible student” to include individuals who are members of a family whose total annual income does not exceed 185 percent of the federal poverty level (Sec. 1).

• Defines “failing school” as a public school that is listed in the lowest 6 percent of public schools based on the state standardized assessments and that does not serve a special population of students (Sec. 1).

• Specifies that a student whose family’s annual income exceeds 185 percent of the federal poverty level and has already received a scholarship shall remain eligible to receive a scholarship unless the annual income of the family of the student exceeds 275 percent of the federal poverty level (Sec. 1).

• Specifies that a scholarship given to an eligible student to attend a qualifying school will not exceed the following amounts in one academic year (Sec. 1):
• A grant of $6,000 for an elementary student;
• A grant of $8,000 for a middle school student; and
• A grant of $10,000 for a high school student.

• Requires scholarship granting organizations to publicly report certain information to the Department of Revenue by the 15th day after the close of each calendar quarter, including, but not limited to, the following information (Sec. 1):
• The total number of scholarships awarded and funded;
• The total amount of funds paid to each qualifying school; and 
• The total number of scholarship recipients enrolled in each qualifying school.

• Requires any scholarship funds that are not used for educational scholarships by the end of the academic year to be turned over to the State Department of Education for its At-Risk Student Program to support underperforming schools (Sec. 1).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that increases the cumulative cap on tax credits available to taxpayers who provide contributions to scholarship granting organizations.

Highlights:

•  Increases the cumulative cap of tax credits that may be claimed by taxpayers who contribute to scholarship granting organizations from $25 million to $30 million annually (Sec. 1).

• Prohibits an individual from claiming a tax credit for a donation that is made under the condition that the scholarship is granted to a particular school or student (Sec. 1).

• Requires educational scholarships to be provided only to “eligible students” who are zoned to attend a “failing school” so that the student can attend a qualifying school (Sec. 1).

• Amends the definition of “eligible student” to include individuals who are members of a family whose total annual income does not exceed 185 percent of the federal poverty level (Sec. 1).

• Defines a “failing school” as a public school that is listed in the lowest 6 percent of public schools based on the state standardized assessment in reading and math (Sec. 1). 

• Specifies that a scholarship given to an eligible student to attend a qualifying school will not exceed the following amounts in one academic year (Sec. 1):
• A grant of $6,000 for an elementary student;
• A grant of $8,000 for a middle school student; and
• A grant of $10,000 for a high school student.

• Requires a scholarship granting organization to publicly report certain information to the Department of Revenue by the 15th day after the close of each calendar quarter, including, but not limited to the following information (Sec. 1):
• The total number of scholarships awarded and funded;
• The total amount of funds paid to each qualifying school; and
• The total number of scholarship recipients enrolled in each qualifying school.

• Requires any scholarship funds that are not used for educational scholarships by the end of the academic year to be turned over to the State Department of Education for its At-Risk Student Program to support underperforming schools (Sec. 1).

Full Bill Text