Massachusetts 2025-2026 Regular Session

Massachusetts Senate Bill S1984 Compare Versions

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

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1	1	1 of 1
2	2	SENATE DOCKET, NO. 729 FILED ON: 1/14/2025
3	3	SENATE . . . . . . . . . . . . . . No. 1984
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	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :Ryan C. FattmanWorcester and HampdenBruce E. TarrFirst Essex and Middlesex2/26/2025 1 of 7
16	16	SENATE DOCKET, NO. 729 FILED ON: 1/14/2025
17	17	SENATE . . . . . . . . . . . . . . No. 1984
18	18	By Mr. Fattman, a petition (accompanied by bill, Senate, No. 1984) of Ryan C. Fattman and
19	19	Bruce E. Tarr for legislation to establish an empowerment scholarship tax credit to expand
20	20	educational opportunities and fair access to quality education for low-and-moderate-income
21	21	students. Revenue.
22	22	[SIMILAR MATTER FILED IN PREVIOUS SESSION
23	23	SEE SENATE, NO. 1812 OF 2023-2024.]
24	24	The Commonwealth of Massachusetts
25	25	_______________
26	26	In the One Hundred and Ninety-Fourth General Court
27	27	(2025-2026)
28	28	_______________
29	29	An Act establishing an empowerment scholarship tax credit to expand educational opportunities.
30	30	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
31	31	of the same, as follows:
32	32	1 SECTION 1. Section 6 of chapter 62 of the General Laws, as appearing in the 2022
33	33	2Official Edition, is hereby amended by inserting after paragraph (cc) (1) the following new
34	34	3subsection:-
35	35	4 (dd) (1) A taxpayer making a qualified donation to a qualified scholarship program
36	36	5offered to qualifying students to an accredited Massachusetts tuition-based school providing
37	37	6elementary and/or secondary education, shall be allowed a refundable credit against the taxes
38	38	7imposed by this chapter.
39	39	8 (2) As used in this subsection, the following words have the following meanings:- 2 of 7
40	40	9 “Qualified donation”, a monetary donation to a “qualified scholarship program”.
41	41	10 “Qualified scholarship program”, a means-tested scholarship program offered and
42	42	11maintained by any Massachusetts accredited tuition-based school providing elementary and/or
43	43	12secondary education.
44	44	13 “Qualifying students”, students residing in the Commonwealth of Massachusetts who
45	45	14would otherwise be accepted to any of the afore-referenced tuition-based schools but for the
46	46	15inability to afford tuition, fees and related education expenses, specifically only students whose
47	47	16household income levels do not exceed a specified amount or who are in foster care or out-of-
48	48	17home care.
49	49	18 “Accredited Massachusetts tuition-based school providing elementary and/or secondary
50	50	19education”, any elementary, middle or high school located in the Commonwealth of
51	51	20Massachusetts which has any nationally- or state-recognized accreditation and which maintains a
52	52	21means-based scholarship program for students who would otherwise be accepted to the school
53	53	22but for the inability to afford tuition, fees and related education expenses.
54	54	23 “Taxpayer”, a taxpayer subject to an excise under this chapter.
55	55	24 (3) A taxpayer making a qualified donation to a qualified scholarship program shall be
56	56	25allowed a refundable credit against the taxes imposed by this chapter. The credit shall be equal
57	57	26to 30 per cent of the amount of the qualified donation. The amount of the credit that may be
58	58	27claimed by a taxpayer for each qualified donation shall not exceed $250,000. 3 of 7
59	59	28 (4) If the amount of the credit allowed under this subsection exceeds the taxpayer’s
60	60	29liability, the commissioner shall treat the excess as an overpayment and shall pay the taxpayer
61	61	30the entire amount of the excess.
62	62	31 (5) All or any tax credits issued in accordance with this section may be in addition to any
63	63	32charitable deductions claimed on the taxpayer’s federal income tax return for the same qualified
64	64	33donations.
65	65	34 (6) Any tax credits which arise under this section from the qualified donation by a pass-
66	66	35through tax entity such as a trust, estate, partnership, corporation, limited partnership, limited
67	67	36liability partnership, limited liability corporation, subchapter S organization, or other fiduciary,
68	68	37shall be used either by such entity in the event it is the taxpayer on behalf of such entity or by the
69	69	38member, partner, shareholder, or beneficiary, as the case may be, in proportion to its interest in
70	70	39such entity in the even that income, deductions, and tax liability passes through such entity to
71	71	40such member, partner, shareholder, or beneficiary. Such tax credits may not be claimed by both
72	72	41the entity and the member, partner, shareholder, or beneficiary, for the same donation.
73	73	42 (7) Any tax credits which arise under this chapter from the qualified donations by a
74	74	43married couple shall be used only if the spouses file a joint return, if both spouses are required to
75	75	44file Massachusetts income tax returns. If only one spouse is required to file a Massachusetts
76	76	45income tax return, that spouse may claim the credit allowed by this chapter on a separate return.
77	77	46 (8) The secretaries of education and administration and finance, acting jointly and in
78	78	47writing, shall authorize tax credits under this subsection together with subsection 38II of chapter
79	79	4863. The total cumulative value of the tax credits authorized pursuant to this section and said
80	80	49section 38II of said chapter 63 shall not exceed $20,000,000 annually. No credits shall be 4 of 7
81	81	50allowed under this subsection except to the extent authorized in this paragraph. The
82	82	51commissioner, after consulting with the secretaries concerning, among other things, the increased
83	83	52access to education opportunities’ objectives of this section, shall adopt regulations governing
84	84	53applications for and other administration of the tax credits.
85	85	54 SECTION 2. Section 38 of Chapter 63 of the General Laws, as so appearing, is hereby
86	86	55amended by inserting after Section 38MM the following new subsection: -
87	87	56 Section 38NN. (a) As used in this subsection, the following words have the following
88	88	57meanings:-
89	89	58 “Qualified donation”, a monetary donation to a “qualified scholarship program”.
90	90	59 “Qualified scholarship program”, a means-tested scholarship program offered and
91	91	60maintained by any Massachusetts accredited tuition-based school providing elementary and/or
92	92	61secondary education.
93	93	62 “Qualifying students”, students residing in the Commonwealth of Massachusetts who
94	94	63would otherwise be accepted to any of the afore-referenced tuition-based schools but for the
95	95	64inability to afford tuition, fees and related education expenses.
96	96	65 “Accredited Massachusetts tuition-based school providing elementary and/or secondary
97	97	66education”, any elementary, middle or high school located in the Commonwealth of
98	98	67Massachusetts which has any nationally- or state-recognized accreditation and which maintains a
99	99	68means-based scholarship program for students who would otherwise be accepted to the school
100	100	69but for the inability to afford tuition, fees and related education expenses.
101	101	70 “Taxpayer”, a taxpayer subject to an excise under this chapter. 5 of 7
102	102	71 (b) A taxpayer making a qualified donation to a qualified scholarship program shall be
103	103	72allowed a refundable credit against the taxes imposed by this chapter. The credit shall be equal
104	104	73to 30 per cent of the amount of the qualified donation. The amount of the credit that may be
105	105	74claimed by a taxpayer for each qualified donation shall not exceed $250,000.
106	106	75 (c) If the amount of the credit allowed under this subsection exceeds the taxpayer’s
107	107	76liability, the commissioner shall treat the excess as an overpayment and shall pay the taxpayer
108	108	77the entire amount of the excess.
109	109	78 (d) All or any tax credits issued in accordance with this section may be in addition to any
110	110	79charitable deductions claimed on the taxpayer’s federal income tax return for the same qualified
111	111	80donations.
112	112	81 (e) Any tax credits which arise under this section from the qualified donation by a pass-
113	113	82through tax entity such as a trust, estate, partnership, corporation, limited partnership, limited
114	114	83liability partnership, limited liability corporation, subchapter S organization, or other fiduciary,
115	115	84shall be used either by such entity in the event it is the taxpayer on behalf of such entity or by the
116	116	85member, partner, shareholder, or beneficiary, as the case may be, in proportion to its interest in
117	117	86such entity in the even that income, deductions, and tax liability passes through such entity to
118	118	87such member, partner, shareholder, or beneficiary. Such tax credits may not be claimed by both
119	119	88the entity and the member, partner, shareholder, or beneficiary, for the same donation.
120	120	89 (f) Any tax credits which arise under this chapter from the qualified donations by a
121	121	90married couple shall be used only if the spouses file a joint return, if both spouses are required to
122	122	91file Massachusetts income tax returns. If only one spouse is required to file a Massachusetts
123	123	92income tax return, that spouse may claim the credit allowed by this chapter on a separate return. 6 of 7
124	124	93 (g) The secretaries of education and administration and finance, acting jointly and in
125	125	94writing, shall authorize tax credits under this subsection together with subsection (x) of section 6
126	126	95of chapter 62. The total cumulative value of the tax credits authorized pursuant to this section
127	127	96and said subsection (x) shall not exceed $20,000,000 annually. No credits shall be allowed under
128	128	97this subsection except to the extent authorized in this paragraph. The commissioner of revenue,
129	129	98after consulting with the secretaries concerning, among other things, the increased access to
130	130	99education opportunities’ objectives of this section, shall adopt regulations governing applications
131	131	100for and other administration of the tax credits.
132	132	101 SECTION 3. (a) Within 2 years after the effective date of this act, and annually
133	133	102thereafter, the state auditor shall issue an economic analysis report on the performance of this tax
134	134	103credit to the House and Senate Committees on Ways and Means and to the Joint Committee on
135	135	104Revenue. An economic analysis shall include, but not be limited to, a good faith estimate, on
136	136	105both a direct and indirect basis, as to the:
137	137	106 (A) Net change in state revenue; and
138	138	107 (B) Net change in state expenditures, which shall include, but not be limited to, costs of
139	139	108administering the tax credit; and
140	140	109 (C) Net change in economic activity; and
141	141	110 (D) Net change in public benefit.
142	142	111 (b) Within 2 years after the effective date of this act, and annually thereafter, each
143	143	112recipient school with a qualified scholarship program must report annually to the Department of
144	144	113Revenue, the following: 7 of 7
145	145	114 (A) The total number and dollar value of individual contributions; and
146	146	115 (B) The total number and dollar value of corporate contributions; and
147	147	116 (C) The total number and dollar value of scholarships awarded to eligible students.
148	148	117 SECTION 4. Sections 1 and 2 shall be effective for tax years beginning on and after
149	149	118January 1, 2026.