SUMMARY:  LC 43 1797

This bill amends portions of the law around donations to student scholarship organizations in exchange for income tax credits.  It would raise the cap on income tax credits from the current $100 million to $150 million effective this year through 2028.  Then it is supposed to drop back to $58 million.  (In 2018, it was raised from $58 million to $100 million for 2019 -2028, then was supposed to drop back to $58 million. Yet here we are.)

The bill adds "business enterprise" to the entities that could qualify for the tax credit.  It is defined as any insurance company or the headquarters of any insurance company required to pay the tax on insurance premiums.  The enterprise could qualify for a credit up to its donation or 75% of its state insurance premium tax liability.  No more than 15% of the allowable tax credits could be used by business enterprises. 

In January 2021, the Department of Audits and Accounts released a report on this program and made several recommendations.

EFFECTIVE DATE:

July 1, 2021 for the taxable year beginning on January 1, 2021