Vote Smart's Synopsis:

Vote to pass a bill that awards income tax credits to individuals and corporations that donate to nonprofit organizations that provide scholarships to students to attend private schools.

Highlights:

- Authorizes a tax credit of up to a $1,000 for individual taxpayers, and $2,500 for for married couples filing a joint return for donating to qualified student scholarship organizations [sec. 2 (b)]. - Authorizes a tax credit for corporations who donate to qualified student scholarship organizations equal to the amount donated or up to 75 percent of their income tax liability, whichever is less. [sec. 2 (c)]. - Prohibits this credit from exceeding a taxpayer's total income tax liability [sec. 2 (e)]. - Allows any unused credit to be applied towards future tax liability for the next 5 years [sec. 2 (e)]. - Caps the amount of tax credits awarded at $50 million per tax year [sec. 2 (f) (1)]. - Disallows anyone from receiving the tax credit if the donation benefited any of the taxpayer's dependents [sec. 2 (d)]. - Requires that at least 90 percent of the student scholarship organization's annual revenue be used for scholarships and tuition grants [sec. 1 (20-2A-2)]. - Requires taxpayer's who apply for the tax credit to include with their tax return a letter of confirmation issued by the qualified student scholarship organization [sec. 2 (g)]. - This is a substitute bill offered by House Ways and Means Committee.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that awards income tax credits to individuals and corporations that donate to nonprofit organizations that provide scholarships to students to attend private schools.

Highlights:

- Authorizes a tax credit of up to a $1,000 for individual taxpayers, and $2,500 for for married couples filing a joint return for donating to qualified student scholarship organizations [sec. 2 (b)]. - Authorizes a tax credit for corporations who donate to qualified student scholarship organizations equal to the amount donated or up to 75 percent of their income tax liability, whichever is less. [sec. 2 (c)]. - Prohibits this credit from exceeding a taxpayer's total income tax liability [sec. 2 (e)]. - Allows any unused credit to be applied towards future tax liability for the next 5 years [sec. 2 (e)]. - Caps the amount of tax credits awarded at $50 million per tax year [sec. 2 (f) (1)]. - Disallows anyone from receiving the tax credit if the donation benefited any of the taxpayer's dependents [sec. 2 (d)]. - Requires that at least 90 percent of the student scholarship organization's annual revenue be used for scholarships and tuition grants [sec. 1 (20-2A-2)]. - Requires taxpayer's who apply for the tax credit to include with their tax return a letter of confirmation issued by the qualified student scholarship organization [sec. 2 (g)]. - This is a substitute bill offered by House Ways and Means Committee.

Full Bill Text