HB559 Alabama 2021 Session

Summary

Primary Sponsor

Charlotte Meadows Representative

Republican

Co-Sponsors

Terri CollinsMike HolmesReed IngramDebbie Wood

Session

Regular Session 2021

Title

Income tax credits, contributions to scholarship granting organizations further provided for, Sec. 16-6D-9 am'd.

Description

Under current law, a taxpayer may claim a tax credit in an amount equal to 100 percent of the total contributions the taxpayer made to a scholarship granting organization for educational scholarships during the taxable year for which the credit is claimed, up to 50 percent of the tax liability of the taxpayer, not to exceed $50,000 per taxpayer or a cumulative amount of $30,000,000 annually.

This bill would allow a taxpayer to claim a tax credit of up to 75 percent of the tax liability of the taxpayer, not to exceed $75,000 per taxpayer or a cumulative amount of $30,000,000 annually.

Under current law, all scholarship granting organizations must ensure that scholarship funds on hand at the beginning of a calendar year are expended on educational scholarships by the end of the academic year ending within the next succeeding calendar year.

This bill would require all scholarship granting organizations to ensure that scholarship funds on hand at the beginning of a calendar year are expended on educational scholarships within three calendar years.

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Subjects

Education