HB 639 -- Betty L. Thompson Scholarship Program and Educational
Tax Credits

Sponsor:  Cunningham (86)

This bill establishes the Betty L. Thompson Scholarship Program
and authorizes an individual and business tax credit for tax
years beginning January 1, 2005, for contributions to certified
nonprofit educational charitable organizations.  These charitable
organizations will distribute the funds to income eligible
students residing in provisional or unaccredited school districts
on a needs basis as defined in the bill for expanded educational
opportunities.  These opportunities include grants to public
schools, after-school programs, a second chance for dropouts to
pursue a general education development (GED) or work program,
transportation to a public school for which state and district
funds are not available, tutorial assistance for public school
students, and tuition and other educational expense assistance
for students to transfer to a public school for participation in
a voluntary desegregation transfer plan or to a nonpublic school.
Contributions for the educational expenses of the taxpayer's
dependent do not qualify for the credit.

The amount of the credit cannot exceed the tax liability of the
taxpayer, but it can carry forward for up to four years.  The
amount of the tax credit is equal to 90% of the contribution, and
the aggregate credit is capped at $40 million with an annual
adjustment for inflation.  The Director of the Department of
Economic Development is authorized to oversee and administer the
credit, establish rules, and certify participating organizations.

Administrative costs for the certified nonprofit educational
assistance organizations are provided through qualified
contributions on a tiered schedule.

School districts may opt into this program.  The eligible pupil
count must be adjusted if a pupil no longer is enrolled or
transfers to another school because of the receipt of a
scholarship.

The bill contains an emergency clause.

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:20 pm