HB550 Alabama 2014 Session

Summary

Primary Sponsor

Joe Hubbard

Democrat

Session

Regular Session 2014

Title

Community College Foundation, state income tax credit for contributions to, to support Career-Technical Dual Enrollment Programs

Summary

The bill creates a state income tax credit for donations to community college foundations supporting career-technical dual enrollment and allows local districts to set up career academies for 10th–12th graders to participate.

What This Bill Does

It would grant a tax credit equal to 50% of qualifying donations to designated community college foundations for career-technical dual enrollment expenses, with a $1,000 minimum donation and annual cap limits. It authorizes local boards of education to establish career academies to help students in grades 10–12 participate in these programs. The Department of Revenue would implement rules, issue receipts, monitor caps, and require documentation; unallocated funds can be carried over to future years. The measure would take effect for tax years beginning in 2014.

Who It Affects

• Individual and business taxpayers who donate to a community college foundation and may claim the tax credit (subject to caps and minimum donation).
• Community college foundations, which receive donations and must allocate funds to qualifying educational expenses for dual enrollment programs.
• High school students in grades 10–12 who are eligible for and participate in career-technical dual enrollment programs through career academies.
• Local boards of education, which may establish career academies and set rules to implement these programs.
• The Department of Revenue, which would administer the tax credit, set procedures, and collect required receipts and documentation.

Key Provisions

• Tax credit equals 50% of total contributions to a community college foundation for qualifying educational expenses related to a career-technical dual enrollment program, with a minimum donation of $1,000 to qualify.
• Annual credit caps: up to $1,000,000 in donations to a single community college foundation and up to $5,000,000 in aggregate donations to multiple foundations per tax year; the Department of Revenue to prevent exceeding caps and notify taxpayers when caps are reached.
• Requirements for documentation: standardized receipts to show contribution value; taxpayers must include receipts when claiming the credit; the Department may require copies of receipts.
• Administration and reporting: the Commissioner of Revenue must annually report total credits claimed and authorized, by a specified date to designated officials.
• Use of funds: foundations allocate or disburse funds for qualifying educational expenses; unallocated funds may be carried over to future tax years.
• Career academies: local boards may establish career academies to help students in grades 11 and 12 participate in dual enrollment programs, with rules to expedite implementation.
• Definitions: clarifies terms such as Career-Technical Dual Enrollment Program, Contribution, Eligible Student, Community College Foundation, Qualifying Educational Expenses, and Taxpayer.
• Effective date: takes effect immediately after governor approval for tax years beginning in 2014.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Education