HB 498 -- Educational Tax Credit Scholarships

Sponsor:  Robb

This bill establishes the Milton Friedman "Put Parents in Charge"
Education Program which authorizes a 65% tax credit beginning
with the 2007 tax year for taxpayers who donate to a
scholarship-granting organization if the donations are not
claimed on the taxpayer's federal income tax return.  The credit
is nonrefundable but may be carried forward for three years or
transferred.  The cumulative amount of tax credits cannot exceed
$40 million annually, indexed for inflation.  Scholarships must
average $5,000, indexed for inflation.

Eligibility standards for students receiving scholarships include
residence in a provisionally accredited, unaccredited, or interim
accredited school district; attendance at a public school for the
semester before a scholarship is granted or starting school in
the state for the first time; and a family income of 185% of the
level which qualifies the student for the reduced lunch program.

Scholarships may be given to:  (1)  a disabled child three years
of age or older if the child's parents have nonreimbursed medical
expenses in excess of 7.5% of their federal adjusted gross
income; and (2)  a child identified by the principal and approved
by the superintendent on the basis of disciplinary or academic
criteria specified in the bill.  Public schools are given the
right of first acceptance of scholarship recipients, and
scholarships may be used at public schools for certain purposes
which include tutoring, general educational development (GED),
and transportation.  Public school districts may opt into the
scholarship program.

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 certain requirements
including employee background checks and student assessments.
The bill specifies how scholarship checks will be distributed.

The provisions of the bill will expire six years from the
effective date, but a child who is receiving a scholarship may
continue in the program until completion of the twelfth grade.

The bill contains an emergency clause.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:19 am