DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 434 Original 2017 Regular Session Smith
Abstract: Reduces the amount of the rebate for taxpayer donations to a school tuition organization
(STO) that provides scholarships to qualified students to attend qualified schools from the
actual amount of the donation used by the STO for a scholarship to 70% of the donation.
Present law authorizes a rebate for donations a taxpayer makes during a taxable year to a STO which
provides scholarships for tuition and fees to qualified students to attend a qualified school. Present
law prohibits more that 5% of a donation to be used by the STO for administrative or promotional
costs.
Present law requires the donation to be made by a taxpayer who files a La. income tax return and
provides that the amount of the rebate shall be equal to the actual amount of the taxpayer's donation
used by the STO to fund a scholarship to a qualified student, excluding administrative costs.
Proposed law reduces the amount of the rebate from the actual amount of the taxpayer's donation
used by the STO to fund a scholarship to 70% of the actual amount of the donation.
Present law authorizes the rebate to be paid after the conclusion of the school year when all of the
following requirements have been satisfied:
(1)The STO certifies to the Dept. of Education (DOE) that the donation has funded a
scholarship for a qualified student.
(2)The DOE verifies that the student was not enrolled in a public school in La. on Oct. 1
st
or
Feb. 1
st
of that school year pursuant to the definition of the student membership established
by the State Board of Elementary and Secondary Education (BESE) for purposes of the
Minimum Foundation Program (MFP) formula and DOE certifies the student count.
(3)If the qualified student is enrolled in public school on Feb. 1
st
of that school year, the amount
of the rebate shall be equal to the actual amount expended by the STO on scholarships,
excluding administrative costs and shall be prorated as applicable.
Proposed law retains present law but reduces the amount of the rebate from the actual amount
expended by the STO on scholarships to 70% of the actual amount expended on scholarships.
Effective July 1, 2017, and shall be applicable to donations made on or after July 1, 2017 to a STO
which provides scholarships to qualified students to attend qualified schools. (Amends R.S. 47:6301(A)(1) and (2)(c))