Establishing an empowerment scholarship tax credit to expand educational opportunities and fair access to quality education for low-and-moderate-income students
Impact
If enacted, S1812 would amend Chapter 62 of Massachusetts General Laws by allowing taxpayers to claim a credit equal to 30% of their monetary donations, with a cap at $250,000 per donation. This initiative is expected to generate funding streams that will support scholarship programs across the state, potentially benefiting many students who might be at risk of gaining limited educational opportunities. Additionally, this bill is projected to produce a cumulative limit on tax credits allowed statewide, not exceeding $20 million annually, thereby putting a check on the financial impact on the state's revenue.
Summary
Senate Bill S1812, also referred to as the Empowerment Scholarship Tax Credit bill, aims to provide financial support for low- and moderate-income students in Massachusetts seeking quality education options. The bill proposes to establish a refundable tax credit for taxpayers who make qualified donations to accredited scholarship programs. These programs are designed to help eligible students attend tuition-based schools that they would otherwise not be able to afford due to financial constraints. The legislation is crafted to promote educational equity by enhancing access for students from low-income backgrounds.
Contention
However, the bill has generated varied opinions among stakeholders. Proponents argue that the empowerment scholarship tax credits will significantly expand educational choices and provide necessary support to families who struggle with tuition costs. Critics, however, contend that such tax incentives could divert public funds away from public school systems, which may be detrimental to their funding and overall educational programs. As such, there are concerns regarding the long-term implications of the bill on educational equity and the public school infrastructure.
Notable_points
Furthermore, S1812 requires that within two years of its implementation, the state auditor will issue an economic analysis evaluating the impact of these tax credits, including changes in state revenue and public benefit. This provision aims to ensure accountability and transparency in the program’s performance and effects on the educational landscape in Massachusetts.
Providing for individual empowerment scholarship accounts; and establishing the Pennsylvania Empowerment Scholarship Accounts Program, the Department of Education Empowerment Scholarship Fund and the State Treasurer Empowerment Scholarship Fund.
Relating to the Alabama Accountability Act of 2013; to amend Sections 16-6D-3, 16-6D-4, 16-6D-6, 16-6D-8, and 16-6D-9, Code of Alabama 1975; to change the terms failing school and nonfailing school to priority school and qualifying school, respectively; to revise and add definitions; to expand scholarships for eligible students attending nonfailing or qualifying schools; to revise the poverty threshold for determining the qualifications of an eligible student; to provide for the qualifying expenses of eligible students with unique needs; to revise the method of determining the amount of educational scholarship awards; to increase the maximum cumulative amount of tax credits that may be issued each year; to require a scholarship granting organization to maintain a reserve balance and to verify the qualifications of an eligible student with unique needs; and to authorize the Department of Revenue to bar qualifying schools or educational service providers from participating in the program under certain circumstances.