Staff Analysis of the Legislation
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SUMMARY: LC 49 0502S LC 49 0545S LC 43 2455S
This bill addresses some of the recommendations made in the state audit of January 2021 on the program allowing income tax credits for donations to student scholarship organizations which then give students vouchers to private schools. Begun in 2008, the program originally had a cap on income tax credits of $50 million. The cap has been raised over time to its current $100 million.
The bill added a requirement that the total number of recipients and the average scholarship dollar amount by county within which the recipient resides be disclosed
The bill also increased the amount of the income tax credit allowable to donors:
- An individual could get a credit up to $2500 (currently $1000)
- A married couple filing jointly could get a credit up to $5000 (currently $2500)'
- Individuals who are members of a limited liability company, a shareholder of a Subchapter 'S' corporation, or a partner in a partnership could receive a tax credit up to $25,000 (currently $10,000)
- A business enterprise (any insurance company or the headquarters of any insurance company required to pay the insurance premium tax) would be allowed a credit equal to their donation to student scholarship organizations or 75% of their insurance premium tax liability whichever is less. The credit can not exceed $1 million. The aggregate amount can not exceed $6 million for any year.
The state cap on the income tax credits is raised to $120 million beginning in 2023.
EFFECTIVE DATE: July 1, 2022 but the increase in allowed tax credits would be effective January 1, 2023 |