SLS 23RS-395 ORIGINAL
2023 Regular Session
SENATE BILL NO. 220
BY SENATOR FOIL
TAX/TAXATION. Provides relative to the income tax credit for donations to school tuition
organizations. (8/1/23)
1 AN ACT
2 To amend and reenact R.S.47:6301(B)(1)(c)(v) and (C)(2)(a), to enact R.S.
3 47:6301(B)(1)(c)(xiii) and (B)(3)(c), and to repeal 47:6301(C)(1)(c), relative to the
4 credit for donations to school tuition organizations; to provide for the distribution of
5 scholarship payments through electronic means; to require the school tuition
6 organization to issue a receipt to the taxpayer indicating the amount of their
7 donation; to provide for an exception to a requirement in the definition of qualified
8 student for students with disabilities; and to provide for related matters.
9 Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 47:6301(B)(1)(c)(v) and (C)(2)(a) are hereby amended and reenacted
11 and R.S. 47:6301(B)(1)(c)(xiii) and (B)(3)(c) are hereby enacted to read as follows:
12 ยง6301. Credit; donations to school tuition organizations
13 * * *
14 B.(1) * * *
15 (c) A school tuition organization which provides scholarships to qualified
16 students shall do all of the following:
17 * * *
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SLS 23RS-395 ORIGINAL
1 (v) Distribute scholarship payments in September, December, February, and
2 May of each year as either electronic payments or checks made out to a parent of
3 a qualified student which are transferred or mailed to the qualifying school where
4 the student is enrolled. The parent shall restrictively approve or endorse the
5 payment check for deposit into the account of the school. The parent shall not
6 designate any entity or individual associated with the school as the parent's attorney
7 to endorse a scholarship check. Any parent who receives payments in accordance
8 with the provisions of this Section shall not be allowed to claim the amount received
9 as any other credit, deduction, exemption, or rebate under Title 47 of the Louisiana
10 Revised Statutes of 1950. If a student who has received a scholarship ceases to be
11 enrolled in a qualified school, the school shall immediately notify the respective
12 student tuition organization and the Department of Education that the student is no
13 longer enrolled. Upon receipt of such notification, the student tuition organization
14 shall cease making payments to the school for that student.
15 * * *
16 (xiii) Shall certify and issue a receipt to a taxpayer indicating the actual
17 amount of the taxpayer's donation to the school tuition organization which was
18 used to fund a scholarship.
19 * * *
20 (3) * * *
21 (c) For taxable periods beginning on or after January 1, 2024, an
22 otherwise qualified student with a disability shall be exempt from the
23 requirement of Subparagraph (a) of this Paragraph that the child be a member
24 of a family with a total household income that does not exceed an amount equal
25 to two hundred fifty percent of the federal poverty level based on the federal
26 poverty guidelines established by the federal office of management and budget.
27 * * *
28 C.(1) * * *
29 (2)(a) The Department of Revenue shall provide a standardized format for a
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SLS 23RS-395 ORIGINAL
1 receipt to be issued by the Department of Education to a school tuition organization.
2 The Department of Revenue shall require a taxpayer to provide a copy of the receipt
3 when claiming the credit authorized by this Section.
4 * * *
5 Section 2. R.S. 47:6301(C)(1)(c) is hereby repealed in its entirety.
6 Section 3. This Act shall be applicable for taxable periods beginning on or after
7 January 1, 2024.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Danielle B. Clapinski.
DIGEST
SB 220 Original 2023 Regular Session Foil
Present law provides an income tax credit for the donation made by a taxpayer to a school
tuition organization that provides scholarships to qualified students to attend qualified
schools.
Present law requires the school tuition organization to distribute scholarship payments in
September, December, February, and May of each year as checks made out to the parent of
the qualified student which are mailed to the qualifying school and restrictively endorsed for
deposit into the account of the school.
Proposed law provides for an option for the scholarship payments to be made electronically
and transferred to the qualifying school with the parent's restrictive approval of the payment
for deposit into the school account and otherwise retains present law.
Present law requires the Department of Education to certify and issue a receipt to the
taxpayer indicating the actual amount of the taxpayer's donation to the school tuition
organization which was used to fund a scholarship.
Proposed law repeals present law and provides that the school tuition organization shall be
required to certify and issue the receipt to the taxpayer indicating the actual amount of the
taxpayer's donation to the school tuition organization that was used to fund a scholarship.
Present law defines a "qualified student" as a child who is a member of a family that resides
in Louisiana with a total household income that does not exceed an amount equal to two
hundred fifty percent of the federal poverty level based on the federal poverty guidelines
established by the federal office of management and budget who also meet additional
requirements.
Proposed law provides that an otherwise qualified student with a disability shall be exempt
from the requirement that the child be a member of a family that resides in Louisiana with
a total household income that does not exceed an amount equal to two hundred fifty percent
of the federal poverty level based on the federal poverty guidelines established by the federal
office of management and budget and otherwise retains present law.
Present law requires the Department of Revenue to provide a standardized form for a receipt
to be issued by the Department of Education to a school tuition organization.The Department
of Revenue shall require taxpayers to provide a copy of the receipt when claiming the credit.
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SLS 23RS-395 ORIGINAL
Proposed law requires the Department of Revenue to provide a standardized form for a
receipt to be issued by the school tuition organization and otherwise retains present law.
Applicable for taxable periods beginning on or after January 1, 2024.
Effective August 1, 2023.
(Amends R.S. 47:6301(B)(1)(c)(v) and (C)(2)(a); adds R.S. 47:6301(B)(1)(c)(xiii) and
(B)(3)(c); repeals R.S. 47:6301(C)(1)(c))
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.