Revise certain provisions related to the partners in education tax credit program.
Impact
The revised legislation is intended to facilitate better access to educational opportunities for low-income students by broadening the range of eligible households. In total, the bill caps the tax credits at $3.5 million annually for the partners in education tax credit program. This cap is significant, as it sets a limit on how much funding can be allocated towards these scholarships, possibly affecting the number of students who can actually benefit. The introduction of tax credits is seen as a means to encourage charitable contributions towards scholarship granting organizations, ultimately aimed at enhancing educational access for children in need.
Summary
Senate Bill 71, titled 'An Act to revise certain provisions related to the partners in education tax credit program,' seeks to amend existing laws governing educational scholarships provided to eligible students in South Dakota. The bill primarily addresses the criteria under which students can qualify for scholarships, specifically focusing on income thresholds and definitions of eligible students. Under this bill, a low-income eligible student is defined as a member of a household whose income does not exceed 100% of the threshold for free or reduced-price lunch. Notably, the bill allows students to remain eligible for scholarships for an extended period, even as household incomes change during their educational journey.
Sentiment
Overall, the sentiment surrounding SB71 appears to be supportive, especially among advocates for educational equity and access. Supporters argue that the expanded definitions and provisions will help alleviate educational disparities faced by low-income families. However, there may also be concerns regarding the potential for caps on funding to limit the program's effectiveness. Critics could potentially argue that expanding tax credits may detract from public school funding or could prioritize nonpublic educational institutions over community schools.
Contention
Despite the positive outlook surrounding SB71, there could be points of contention regarding the definition of 'qualifying schools.' The bill explicitly excludes any school that receives the majority of its funding from public sources. This exclusion has led to discussions about whether the emphasis on nonpublic education might inadvertently undermine public school systems. The limitations placed on funding and the eligibility criteria may also raise debates concerning the adequacy of support provided to low-income families seeking quality education.
Relating to a franchise or insurance premium tax credit for contributions made to certain educational assistance organizations; adding provisions subject to a criminal penalty.