SB 81 Tax Credit Scholarships and Education Improvement Grants; Senator Dave Lewis

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Allows 10 million dollars to individual taxpayers and corporations in tax credits for donations made to non-profit organizations. These non-profits must:

  • give scholarships to students to attend a school of the parent’s choice or 
  • give grants to public schools to add educational opportunities to their curriculum and, or
  • give grants to Montana colleges for vocational technical programs

Nonprofit Student Scholarship Organizations (SSO) may accept up to 5 million in donations applicable to the tax credit. SSO’s shall give scholarships to parents. Scholarships may value up to 60% of the per student average spending of Montana public schools (approximately $11,000/student) but all scholarships granted by the Student Scholarship Organizations must average less the 30% of the per student average spending of Montana public schools. The Student Scholarship Organizations or the donors may not direct scholarships to one school or one type of school. The SSO’s may determine the financial need of the applicant for the scholarship value but the parent chooses the school that is right for the child.

Nonprofit Education Improvement Organizations (EIO) may accept up to 5 million dollars in donations applicable to the tax credit. EIO’s shall give grants to public schools or school district to enhance education opportunities and or Montana Colleges with vocational-technical programs. EIO’s may not provide a grant to an eligible public school that exceeds 25% of annual contributions to the organization.

Donors apply for the tax credit, once approved make their donations and then file for the tax credit in their income tax return. The credit is available on a first come basis, may not be carried forward or backward and only applies to taxpayers with a Montana State income tax liability.

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commented 2013-12-21 15:39:34 -0700
Thank you
Educate Me Montana
Fighting to give families school choice in Montana.