Rhode Island Senate Bill S0267

Rhode Island 2023 Regular Session

• Introduced: 2/16/23
• Refer: 2/16/23

Caption

Tax Credits For Contributions To Scholarship Organizations

Impact

The anticipated impact of S0267 on state laws includes a more favorable tax environment for businesses contributing to educational scholarships. By increasing the cap on total available tax credits, the bill encourages businesses to invest in local scholarship organizations, potentially increasing funding for private education. This shift may lead to an enhanced educational landscape within Rhode Island, as more funds can be allocated towards scholarships that enable students to attend qualified schools.

Summary

S0267 is a legislative proposal that focuses on enhancing tax credits for contributions made to scholarship organizations in the state of Rhode Island. Specifically, the bill seeks to increase the annual aggregate tax credits awarded from $1.5 million to $5 million for the fiscal year of 2024. It also establishes new criteria for eligibility concerning business entities wishing to partake in this scholarship contribution program. This aims to incentivize businesses to support educational initiatives financially, thereby fostering a greater participation in the state’s scholarship programs.

Contention

While S0267 presents potential benefits, there are possible points of contention among stakeholders. Critics may argue that the reliance on tax credits for funding scholarship organizations could detract from public school funding or create inequities in educational access. Additionally, the criteria defining 'eligible business entities' might face scrutiny, as stakeholders assess whether the bill adequately balances support for education with the interests of taxpayers and public education systems.