Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S1812 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 of 1
2	2	SENATE DOCKET, NO. 1635 FILED ON: 1/19/2023
3	3	SENATE . . . . . . . . . . . . . . No. 1812
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Ryan C. Fattman
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act establishing an empowerment scholarship tax credit to expand educational opportunities
13	13	and fair access to quality education for low-and-moderate-income students.
14	14	_______________
15	15	PETITION OF:
16	16	NAME:DISTRICT/ADDRESS :Ryan C. FattmanWorcester and Hampden 1 of 7
17	17	SENATE DOCKET, NO. 1635 FILED ON: 1/19/2023
18	18	SENATE . . . . . . . . . . . . . . No. 1812
19	19	By Mr. Fattman, a petition (accompanied by bill, Senate, No. 1812) of Ryan C. Fattman for
20	20	legislation to establish an empowerment scholarship tax credit to expand educational
21	21	opportunities and fair access to quality education for low-and-moderate-income students.
22	22	Revenue.
23	23	[SIMILAR MATTER FILED IN PREVIOUS SESSION
24	24	SEE SENATE, NO. 1864 OF 2021-2022.]
25	25	The Commonwealth of Massachusetts
26	26	_______________
27	27	In the One Hundred and Ninety-Third General Court
28	28	(2023-2024)
29	29	_______________
30	30	An Act establishing an empowerment scholarship tax credit to expand educational opportunities
31	31	and fair access to quality education for low-and-moderate-income students.
32	32	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
33	33	of the same, as follows:
34	34	1 SECTION 1. Section 6 of chapter 62 of the General Laws, as appearing in the 2020
35	35	2Official Edition, is hereby amended by inserting after paragraph (w) the following new
36	36	3subsection:-
37	37	4 (x) (1) A taxpayer making a qualified donation to a qualified scholarship program offered
38	38	5to qualifying students to an accredited Massachusetts tuition-based school providing elementary
39	39	6and/or secondary education, shall be allowed a refundable credit against the taxes imposed by
40	40	7this chapter.
41	41	8 (2) As used in this subsection, the following words have the following meanings:- 2 of 7
42	42	9 “Qualified donation”, a monetary donation to a “qualified scholarship program”.
43	43	10 “Qualified scholarship program”, a means-tested scholarship program offered and
44	44	11maintained by any Massachusetts accredited tuition-based school providing elementary and/or
45	45	12secondary education.
46	46	13 “Qualifying students”, students residing in the Commonwealth of Massachusetts who
47	47	14would otherwise be accepted to any of the afore-referenced tuition-based schools but for the
48	48	15inability to afford tuition, fees and related education expenses, specifically only students whose
49	49	16household income levels do not exceed a specified amount or who are in foster care or out-of-
50	50	17home care.
51	51	18 “Accredited Massachusetts tuition-based school providing elementary and/or secondary
52	52	19education”, any elementary, middle or high school located in the Commonwealth of
53	53	20Massachusetts which has any nationally- or state-recognized accreditation and which maintains a
54	54	21means-based scholarship program for students who would otherwise be accepted to the school
55	55	22but for the inability to afford tuition, fees and related education expenses.
56	56	23 “Taxpayer”, a taxpayer subject to an excise under this chapter.
57	57	24 (3) A taxpayer making a qualified donation to a qualified scholarship program shall be
58	58	25allowed a refundable credit against the taxes imposed by this chapter. The credit shall be equal
59	59	26to 30 per cent of the amount of the qualified donation. The amount of the credit that may be
60	60	27claimed by a taxpayer for each qualified donation shall not exceed $250,000. 3 of 7
61	61	28 (4) If the amount of the credit allowed under this subsection exceeds the taxpayer’s
62	62	29liability, the commissioner shall treat the excess as an overpayment and shall pay the taxpayer
63	63	30the entire amount of the excess.
64	64	31 (5) All or any tax credits issued in accordance with this section may be in addition to any
65	65	32charitable deductions claimed on the taxpayer’s federal income tax return for the same qualified
66	66	33donations.
67	67	34 (6) Any tax credits which arise under this section from the qualified donation by a pass-
68	68	35through tax entity such as a trust, estate, partnership, corporation, limited partnership, limited
69	69	36liability partnership, limited liability corporation, subchapter S organization, or other fiduciary,
70	70	37shall be used either by such entity in the event it is the taxpayer on behalf of such entity or by the
71	71	38member, partner, shareholder, or beneficiary, as the case may be, in proportion to its interest in
72	72	39such entity in the even that income, deductions, and tax liability passes through such entity to
73	73	40such member, partner, shareholder, or beneficiary. Such tax credits may not be claimed by both
74	74	41the entity and the member, partner, shareholder, or beneficiary, for the same donation.
75	75	42 (7) Any tax credits which arise under this chapter from the qualified donations by a
76	76	43married couple shall be used only if the spouses file a joint return, if both spouses are required to
77	77	44file Massachusetts income tax returns. If only one spouse is required to file a Massachusetts
78	78	45income tax return, that spouse may claim the credit allowed by this chapter on a separate return.
79	79	46 (8) The secretaries of education and administration and finance, acting jointly and in
80	80	47writing, shall authorize tax credits under this subsection together with subsection 38II of chapter
81	81	4863. The total cumulative value of the tax credits authorized pursuant to this section and said
82	82	49section 38II of said chapter 63 shall not exceed $20,000,000 annually. No credits shall be 4 of 7
83	83	50allowed under this subsection except to the extent authorized in this paragraph. The
84	84	51commissioner, after consulting with the secretaries concerning, among other things, the increased
85	85	52access to education opportunities’ objectives of this section, shall adopt regulations governing
86	86	53applications for and other administration of the tax credits.
87	87	54 SECTION 2. Section 38 of Chapter 63 of the General Laws, as appearing in the 2020
88	88	55Official Edition, is hereby amended by inserting after Section 38HH the following new
89	89	56subsection: -
90	90	57 Section 38II. (a) As used in this subsection, the following words have the following
91	91	58meanings:-
92	92	59 “Qualified donation”, a monetary donation to a “qualified scholarship program”.
93	93	60 “Qualified scholarship program”, a means-tested scholarship program offered and
94	94	61maintained by any Massachusetts accredited tuition-based school providing elementary and/or
95	95	62secondary education.
96	96	63 “Qualifying students”, students residing in the Commonwealth of Massachusetts who
97	97	64would otherwise be accepted to any of the afore-referenced tuition-based schools but for the
98	98	65inability to afford tuition, fees and related education expenses.
99	99	66 “Accredited Massachusetts tuition-based school providing elementary and/or secondary
100	100	67education”, any elementary, middle or high school located in the Commonwealth of
101	101	68Massachusetts which has any nationally- or state-recognized accreditation and which maintains a
102	102	69means-based scholarship program for students who would otherwise be accepted to the school
103	103	70but for the inability to afford tuition, fees and related education expenses. 5 of 7
104	104	71 “Taxpayer”, a taxpayer subject to an excise under this chapter.
105	105	72 (b) A taxpayer making a qualified donation to a qualified scholarship program shall be
106	106	73allowed a refundable credit against the taxes imposed by this chapter. The credit shall be equal
107	107	74to 30 per cent of the amount of the qualified donation. The amount of the credit that may be
108	108	75claimed by a taxpayer for each qualified donation shall not exceed $250,000.
109	109	76 (c) If the amount of the credit allowed under this subsection exceeds the taxpayer’s
110	110	77liability, the commissioner shall treat the excess as an overpayment and shall pay the taxpayer
111	111	78the entire amount of the excess.
112	112	79 (d) All or any tax credits issued in accordance with this section may be in addition to any
113	113	80charitable deductions claimed on the taxpayer’s federal income tax return for the same qualified
114	114	81donations.
115	115	82 (e) Any tax credits which arise under this section from the qualified donation by a pass-
116	116	83through tax entity such as a trust, estate, partnership, corporation, limited partnership, limited
117	117	84liability partnership, limited liability corporation, subchapter S organization, or other fiduciary,
118	118	85shall be used either by such entity in the event it is the taxpayer on behalf of such entity or by the
119	119	86member, partner, shareholder, or beneficiary, as the case may be, in proportion to its interest in
120	120	87such entity in the even that income, deductions, and tax liability passes through such entity to
121	121	88such member, partner, shareholder, or beneficiary. Such tax credits may not be claimed by both
122	122	89the entity and the member, partner, shareholder, or beneficiary, for the same donation.
123	123	90 (f) Any tax credits which arise under this chapter from the qualified donations by a
124	124	91married couple shall be used only if the spouses file a joint return, if both spouses are required to 6 of 7
125	125	92file Massachusetts income tax returns. If only one spouse is required to file a Massachusetts
126	126	93income tax return, that spouse may claim the credit allowed by this chapter on a separate return.
127	127	94 (g) The secretaries of education and administration and finance, acting jointly and in
128	128	95writing, shall authorize tax credits under this subsection together with subsection (x) of section 6
129	129	96of chapter 62. The total cumulative value of the tax credits authorized pursuant to this section
130	130	97and said subsection (x) shall not exceed $20,000,000 annually. No credits shall be allowed under
131	131	98this subsection except to the extent authorized in this paragraph. The commissioner of revenue,
132	132	99after consulting with the secretaries concerning, among other things, the increased access to
133	133	100education opportunities’ objectives of this section, shall adopt regulations governing applications
134	134	101for and other administration of the tax credits.
135	135	102 SECTION 3. (a) Within 2 years after the effective date of this act, and annually
136	136	103thereafter, the state auditor shall issue an economic analysis report on the performance of this tax
137	137	104credit to the House and Senate Committees on Ways and Means and to the Joint Committee on
138	138	105Revenue. An economic analysis shall include, but not be limited to, a good faith estimate, on
139	139	106both a direct and indirect basis, as to the:
140	140	107 (A) Net change in state revenue; and
141	141	108 (B) Net change in state expenditures, which shall include, but not be limited to, costs of
142	142	109administering the tax credit; and
143	143	110 (C) Net change in economic activity; and
144	144	111 (D) Net change in public benefit. 7 of 7
145	145	112 (b) Within 2 years after the effective date of this act, and annually thereafter, each
146	146	113recipient school with a qualified scholarship program must report annually to the Department of
147	147	114Revenue, the following:
148	148	115 (A) The total number and dollar value of individual contributions; and
149	149	116 (B) The total number and dollar value of corporate contributions; and
150	150	117 (C) The total number and dollar value of scholarships awarded to eligible students.
151	151	118 SECTION 4. Sections 1 and 2 shall be effective for tax years beginning on and after
152	152	119January 1, 2023.