HB 417 -- Special Needs Scholarship Tax Credit

Sponsor:  Scharnhorst

This bill establishes Bryce's Law which authorizes, beginning
January 1, 2009, a tax credit for an individual who donates to a
scholarship-granting organization if the donation is not claimed
on the taxpayer's federal income tax return.  The tax credit may
be taken against income tax, corporate franchise tax, insurance
premium tax, financial institutions tax, and express company tax
liability.  The credit will be for 80% of the amount of the
contribution but cannot exceed 50% of the taxpayer's state tax
liability, up to $800,000 per year, and is nonrefundable but may
be carried forward for four years or transferred or sold for
between 75% and 100% of its par value.  The Director of the
Department of Economic Development must determine, at least
annually, which organizations may be classified as scholarship-
granting organizations.

Eligibility standards for students receiving scholarships are
attendance at a public school with an individualized education
plan (IEP) or until enrollment in a Missouri school.  Up to 10%
of students with an IEP may receive a scholarship each year.
Scholarship-granting organizations must meet requirements for
fiscal soundness, percentage of revenues devoted to educational
scholarships, and public reporting.  Private schools qualify to
accept scholarship students by meeting specified requirements
including employee background checks and providing data as
requested, among others.  Scholarships may also be used at a
public school outside the student's resident school district.
The bill specifies how scholarship checks will be distributed.

The department must conduct a study to measure student
achievement, satisfaction with the program, and its fiscal impact
on the state and public schools and provide the General Assembly
with a final copy of the evaluation by December 31, 2014.  The
department cannot use state funds for the study and may contract
with one or more qualified researchers who have previous
experience evaluating similar programs.

The provisions of the bill will expire December 31 six years from
the effective date.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:24 am