HB 1886 -- Special Needs Scholarship Tax Credits

Sponsor:  Scharnhorst

Beginning January 1, 2008, this bill establishes Bryce's Law
which authorizes 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.

Eligibility standards for students receiving scholarships are
attendance at a public school with an individualized education
plan.  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 of Economic Development 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, 2009.  The department cannot use public money 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
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:11 pm