HB 808 -- Betty L. Thompson Tax Credit Scholarships

Sponsor:  Bearden

This bill establishes the Betty L. Thompson Scholarship Program
which authorizes a tax credit beginning with the 2007 tax year
for taxpayers who donate to an educational assistance
organization if the donations are not claimed on the taxpayer's
federal income tax return.  The credit is for 65% of the amount
of the contribution and 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 may not exceed $5,000, indexed for
inflation.  Thirty-two million dollars will be allotted for tax
credit scholarships and $8 million for public school foundations.

Eligibility standards for students receiving scholarships include
a grade point average of 2.5 or less; residence in the St. Louis
or Kansas City 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 no more than
35% above the qualifying line for the reduced school lunch
program.

Educational assistance 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 requirements which include
employee background checks and administering state student
assessments, among others.  The bill specifies how scholarship
checks will be distributed.

Scholarships may also be used at public schools outside the
eligible school districts and they will have the right of first
acceptance of scholarship students.  If the scholarship student
attends another public school, the accepting school must take the
educational scholarship funds instead of state funds owed to the
accepting district.

The Joint Committee on Legislative Research will contract a study
to measure student achievement, satisfaction with the program,
and its impact on public and private schools.

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

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:20 am