Increase aggregate limit for student scholarship and innovative education credit
Impact
The proposed changes in HB 294 would notably increase the aggregate cap on the total amount of tax credits available for education-related donations. For instance, the cap is set to escalate from $1 million in 2022 to $5 million by 2024. This increase enables more donors to contribute towards educational innovations, thereby influencing how public schools receive funding and develop new programs aimed at enhancing educational quality. Fiscal implications may arise, with potential reductions in state tax revenues, but advocates argue the benefits on educational quality would outweigh these costs.
Summary
House Bill 294 aims to increase the aggregate limits for education tax credits in Montana. Specifically, it proposes to raise the limits for both the student scholarship organization credit and the credit for supplemental funding to public schools. This bill is a continuation of the efforts to promote innovative educational programs and financial assistance for private school scholarships, reflecting a growing emphasis on school choice and educational diversity.
Contention
While proponents of HB 294 hail it as a step towards substantial educational reform and enhanced funding for innovative programs, critics express concerns over the impact on public education funding. They suggest that relying heavily on tax credits for funding could create inequities in educational resources between low-income and affluent districts. Moreover, the ability of donors to claim significant tax credits raises questions about the role of private funding in public education, with some fearing it might lead to favoritism in program funding and contributions.
Expanding student eligibility under the tax credit for low income students scholarship program, increasing the amount of the tax credit for contributions made pursuant to such program and providing for aggregate tax credit limit increases under certain conditions.
Expanding the tax credit for low income students scholarship program act to allow certain high school students and students eligible to be enrolled in certain school districts to be eligible for scholarships, increasing the tax credit for contributions and the aggregate tax credit limit, providing for aggregate tax credit increases under certain conditions and providing for program administration by the state treasurer.
Expanding student eligibility under the tax credit for low income students scholarship program, increasing the amount of the tax credit for contributions made pursuant to such program and providing for aggregate tax credit limit increases under certain conditions.
Individual income tax: credit; credit for contributions to scholarship-granting organizations and deduction of funds distributed to student opportunity scholarship accounts; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30) & adds secs. 279 & 679. TIE BAR WITH: SB 0710'24
Individual income tax: credit; credit for contributions to scholarship-granting organizations and deduction of funds distributed to student opportunity scholarship accounts; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30) & adds secs. 279 & 679. TIE BAR WITH: SB 0320'25