SLS 19RS-56 ORIGINAL
2019 Regular Session
SENATE BILL NO. 83
BY SENATOR BOUDREAUX
TAX EXEMPTIONS. Provides for the individual income tax credit for donations to school
tuition organizations. (1/1/20)
1 AN ACT
2 To amend and reenact R.S. 47:6301(A)(1) and (B)(1)(c) and (v), relative to the credit for
3 donations to school tuition organizations; to provide for the amount of the credit; to
4 provide for scholarship payments; and to provide for related matters.
5 Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 47:6301(A)(1) and (B)(1)(c) and (v) are hereby amended and
7 reenacted to read as follows:
8 ยง6301. Credit; donations to school tuition organizations
9 A.(1) For donations made on or after January 1, 2018, there shall be allowed
10 a nonrefundable income tax credit for donations a taxpayer makes during a taxable
11 year to a school tuition organization that provides scholarships to qualified students
12 to attend a qualified school. In order to qualify for the credit, the donation shall be
13 made by a taxpayer who is required to file a Louisiana income tax return. The
14 amount of the credit shall be equal to ninety-five percent of the actual amount of the
15 taxpayer's donation used by a school tuition organization to fund a scholarship to a
16 qualified student, which shall not include administrative costs.
17 * * *
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 83
SLS 19RS-56 ORIGINAL
1 B.(1)(a) * * *
2 (c) A school tuition organization which that provides scholarships to
3 qualified students shall do all of the following:
4 * * *
5 (v) Distribute scholarship payments in September, December, February, and
6 May October and February of each year as checks made out to a parent of a
7 qualified student which are mailed to the qualifying school where the student is
8 enrolled. The parent shall restrictively endorse the check for approve the payment
9 for deposit into the account of the school. The parent shall not designate any entity
10 or individual associated with the school as the parent's attorney to endorse a
11 scholarship check. Any parent who receives payments in accordance with the
12 provisions of this Section shall not be allowed to claim the amount received as any
13 other credit, deduction, exemption, or rebate under Title 47 of the Louisiana Revised
14 Statutes of 1950. If a student who has received a scholarship ceases to be enrolled
15 in a qualified school, the school shall immediately notify the respective student
16 tuition organization and the Department of Education that the student is no longer
17 enrolled. Upon receipt of such notification, the student tuition organization shall
18 cease making payments to the school for that student.
19 * * *
20 Section 2. This Act shall become effective on January 1, 2020.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 83 Original 2019 Regular Session Boudreaux
Present law provides a 100% credit for the amount of the taxpayer's donation actually used
by a school tuition organization (STO) to fund a scholarship to a qualified student, which
shall not include administrative costs.
Proposed law changes the credit percentage to 95% of the amount of the donation, but
eliminates the requirement that the amount of the credit be reduced by the STO's
administrative costs.
Present law requires payments of scholarships four times a year.
Proposed law reduces the required scholarship payments to two per year.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 83
SLS 19RS-56 ORIGINAL
Present law requires that scholarship payments be made in the form of a check that is mailed
to the parent of the child receiving the scholarship.
Proposed law eliminates the requirement that all scholarship payments be made by paper
check.
Effective January 1, 2020.
(Amends R.S. 47:6301(A)(1) and (B)(1)(c) and (v))
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.