A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Plain English Breakdown

The bill summary does not provide specific details beyond the changes mentioned, leaving some aspects open-ended.

School Scholarship Tax Credit Increase

This bill changes Indiana's school scholarship tax credit rules, increasing the percentage and total amount available.

What This Bill Does

• Increases the percentage of a contribution that can be claimed as a tax credit from 50% to 75%.
• Allows taxpayers who commit to making contributions for at least two consecutive years to claim up to 90% of their contributions as a tax credit.
• Raises the yearly limit on total tax credits available from $18.5 million to $80 million.
• Expands the definition of 'participating school' by removing requirements about testing and accreditation.

Who It Names or Affects

• Taxpayers who give money for school scholarships
• Schools that participate in the scholarship program

Terms To Know

tax credit

A reduction in taxes based on certain activities or contributions.

participating school

A school that is part of the scholarship program and can receive funds from it.

Limits and Unknowns

• The bill does not specify how much more money will be available for tax credits each year beyond the initial increase.
• It's unclear if there are limits on how many schools can participate in the expanded definition of 'participating school'.

Official Summary Text

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.
School scholarship tax credits.

Current Bill Text

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

School scholarship tax credits.

Increases the percentage of the contribution allowed to be claimed for the school scholarship tax credit (tax credit) from 50% to 75%. Allows taxpayers that commit to making a contribution of at least the same amount for at least two consecutive years to claim the tax credit in an amount equal to 90% of the amount of the contribution. Increases the total amount of tax credits that may be awarded for a state fiscal year from $18,500,000 to $80,000,000. Provides a calculation for an annual increase of the total amount of tax credits for future state fiscal years based on the tax credit's usage. Expands the definition of "participating school" for purposes of the certification of scholarship granting organizations by removing language providing for accreditation and administration of tests under the statewide assessment program or other norm-referenced assessment of the school's students. Requires the receipt prescribed by the department of state revenue for use in an agreement to be a scholarship granting organization to include whether a taxpayer commits to making contributions of at least the same amount for at least two consecutive years.