Revise aggregate limit on education scholarship tax credit programs
Impact
This bill directly impacts state laws by increasing the aggregate dollar limits that can be applied as tax credits. For instance, it raises the allowable tax credits to $2 million per year starting from the tax year 2023, with mechanisms to further increase this limit if certain conditions, related to preapproval of the credits, are met. Such changes may result in enhanced funding opportunities for public schools, thereby supporting the development of innovative educational programs that aim to improve educational outcomes for students across Montana.
Summary
Senate Bill 118 aims to revise the existing laws related to the tax credit scholarship program and the innovative educational program in Montana. The bill proposes to change the aggregate limits of tax credits available under these programs and seeks to repeal the termination dates for these programs. Specifically, it amends sections regarding tax credits for donations made to public schools and student scholarship organizations, allowing for larger annual credits based on preapproved amounts. The introduced revisions could significantly increase the state-sponsored educational funding available to schools and students involved in innovative educational programs.
Contention
Notable points of contention surrounding SB 118 may revolve around discussions of whether the increase in tax credits appropriately addresses educational funding needs or if it leads to potential inefficiencies in the allocation of state resources. Critics could argue that while the bill aims to enhance educational funding, it might favor certain schools or programs over others without adequate oversight and accountability measures. The divergent opinions on how best to support public education funding and the implications of tax credits as a funding tool represent ongoing discussions that are likely to be influenced by various stakeholders, including education officials and taxpayers.
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 0320'25
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