Signed by Governor Steve Bullock

Vote Smart's Synopsis:

Vote to pass a bill that authorize tax credits for donations to certain educational programs and student scholarship organizations.

Highlights:

• Authorizes a taxpayer or corporation to claim a tax credit of up to $150 for donating to a public school for an “innovative educational program” or to a “student scholarship organization” (Secs. 13 & 14).

• Defines “innovative educational program” as an academic program that enhances the curriculum of a public school and has at least 1 of the following characteristics (Sec. 2):
• The program is accessible before or after public school hours;
• The program uses specialized instruction not provided by a public school;
• The program provides credit or advanced placement at a 2-year or 4-year college; or
• The program provides a methodology or delivery that is different from a public school.

• Defines “student scholarship organization” as a tax-exempt charitable organization that allocates at least 90 percent of its annual revenue for educational scholarships and provides scholarships to eligible students without limiting students to 1 education provider (Sec. 8).

• Limits the total amount of tax credits under the provisions of this bill to $3 million for tax year 2015, with a 10 percent increase each succeeding tax year if the limit is met (Secs. 13 & 14).

• Prohibits a parent or guardian from accepting scholarships from a student scholarship organization if the total amount of the awards exceeds 50 percent of the average public school expenditure per student (Sec. 10).

• Specifies that the provisions of this bill terminate December 31, 2021 (Sec. 32).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes tax credits for contributions to innovative educational programs and student scholarship organizations.

Highlights:

• Authorizes a taxpayer or corporation to claim a tax credit of up to $150 for providing supplemental funding to public schools for “innovative educational programs” or to a “student scholarship organization” (Secs. 13 & 14).

• Defines an “innovative educational program” as an academic program that enhances the curriculum of an eligible public school, is not part of the regular academic program, and includes 1 of the following characteristics (Sec. 2):

• The program provides a different focus, method, or skill training;

• Is accessible before or after school hours;

• Utilizes specialized instruction not provided by a public school; or

• Provides credit or advanced placement at a 2-year or 4-year college.

• Defines a “student scholarship organization” as a charitable organization that is exempt from federal income taxation, allocates at least 90 percent of its annual revenue for educational scholarships, and provides educational scholarships to eligible students without limiting students to 1 education provider (Sec. 8).

• Limits the sum of tax payments for funding innovative educational programs and student scholarship programs to $3 million for the 2015 tax year, and increases the limited amount by 10% each succeeding tax year if the limit is met (Secs. 13 & 14).

• Prohibits a donor from directing or designating contributions to a parent, legal guardian, or specific education provider (Sec. 14).

• Prohibits a taxpayer or corporation from claiming a tax credit for funding an innovative educational program or student scholarship organization as a charitable contribution (Secs. 13 & 14).

• Prohibits a parent or legal guardian from accepting 1 or more scholarships awarded by a student scholarship organization if the total amount of the awards exceeds 50% of the average public school expenditure per student (Sec. 10).

• Specifies that the provisions in the bill terminate December 31, 2021 (Sec. 29).

Full Bill Text