HB 1479 -- Education Charity Tax Credit Scholarships

Sponsor:  Cunningham (86)

This bill establishes the Angell Scholarship Program and
authorizes an individual and business tax credit for tax years
beginning January 1, 2006, for contributions to certified
nonprofit educational charitable organizations.  These charitable
organizations will distribute the funds for expanded educational
opportunities to income eligible students residing in the St.
Louis or Kansas City school districts, provisional or
unaccredited school districts, or students in other districts who
meet specified criteria.  These opportunities include grants to
public schools, programs to help dropouts to pursue a general
education development (GED) or work program, 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.  The scholarships will be awarded on a
needs basis.  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 be carried forward for up to four years.
The amount of the tax credit is equal to 85% 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 not explicitly made eligible may opt into this
program by a vote of the local school board.  The weighted
average daily attendance count must be adjusted if a pupil no
longer is enrolled or transfers to another school because of the
receipt of a scholarship.

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

The bill contains an emergency clause.

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:43 am