SB 27

Abstract

Income tax credits; Neighborhood Assistance Program and Education Improvement Scholarships. Makes several amendments to expand the availability of the Neighborhood Assistance Program (NAP) and Education Improvement Scholarships Tax Credits (EISTC). The bill increases the limit on NAP credits approved by the Department of Education (DOE) from $9 million to $12 million and provides that the annual allocation of tax credits among neighborhood organizations shall not rely solely on the amount of credits awarded in the previous year. For the EISTC, the bill increases the value of the credit from 65 percent to 70 percent of the value of a donation and allows certified public accountants to receive tax credits for donations of accounting services to scholarship organizations. The bill also retains requirements and guidelines for eligible students with a disability that under current law were scheduled to expire on December 31, 2023. This bill incorporates SB 709.

Income tax credits; Neighborhood Assistance Program and Education Improvement Scholarships. Makes several amendments to expand the availability of the Neighborhood Assistance Program (NAP) and Education Improvement Scholarships Tax Credits (EISTC). The bill increases the limit on NAP credits approved by the Department of Education (DOE) from $9 million to $25 million. When added to the current limit of $8 million of NAP credits approved by the Department of Social Services (DSS), the overall limit on NAP credits would be $33 million. The bill makes decisions of DOE and DSS regarding the qualification of a scholarship foundation or the awarding of tax credits subject to judicial appeal; currently, such decisions are final. The bill provides that the annual allocation of tax credits among neighborhood organizations shall not rely solely on the amount of credits awarded in the previous year. For the EISTC, the bill allows certified public accountants to receive tax credits for donations of accounting services to scholarship organizations. The bill also authorizes scholarship foundations, which are the sole recipient of funding from the issuance of EISTC, to receive funding for scholastic assistance, defined in the bill as counseling or supportive services. Under current law, scholarship foundations may receive EISTC funding only for the purpose of providing scholarships.