Relating to a franchise or insurance premium tax credit for contributions made to certain educational assistance organizations.
Impact
If enacted, HB 1043 will add a new section to the Texas Tax Code that permits businesses and entities to claim a tax credit equal to a percentage of their contributions to approved educational assistance organizations. This move aims to incentivize donations to organizations that directly aid in educational funding, particularly for students who are in foster care, institutional care, or come from low-income households. The bill also stipulates that these contributions cannot be used to favor specific individuals or families, reinforcing its purpose of promoting broader educational support rather than capturing tax advantages for specific donors.
Summary
House Bill 1043 proposes a tax credit for contributions made by taxable entities to certain educational assistance organizations, which provide scholarships or educational expense assistance for eligible students attending both public and nonpublic schools within Texas. This bill establishes specific criteria for what qualifies as an educational assistance organization and outlines the relevant eligibility requirements for both organizations and students seeking assistance. The intention behind the bill is to enhance education accessibility and financial support for lower-income students, particularly those enrolled in areas deemed economically disadvantaged.
Contention
Critics of HB 1043 may raise concerns about the potential limitations it imposes on public funding for education and the implications for accountability in nonpublic educational institutions receiving assistance under the act. Notably, the bill includes provisions for the Comptroller of Public Accounts to oversee the implementation of the credits and to assess any net savings derived from the reduction in state spending due to the scholarships awarded. Opponents argue that while the intent of supporting low-income students is commendable, the transfer of public funds to private educational entities may ultimately dilute accountability and oversight provisions inherent in public education funding.
Relating to the establishment of the Texas Parental Empowerment Program and an insurance premium tax credit for contributions made for purposes of that program.
Relating to the establishment of the Texas Parental Empowerment Program and an insurance premium tax credit for contributions made for purposes of that program.
Relating to the establishment of the Texas Parental Empowerment Program and an insurance premium tax credit for contributions made for purposes of that program.
Relating to the establishment of the Education Savings Account Program to allow certain children to use public money to pursue educational alternatives to public schools and an insurance premium tax credit for contributions made for purposes of that program.
Relating to the establishment of the Education Savings Account Program to allow certain children to use public money to pursue educational alternatives to public schools and an insurance premium tax credit for contributions made for purposes of that program.
Relating to the establishment of the Education Savings Account Program to allow certain disadvantaged children and their siblings to use public money to pursue educational alternatives to public schools and an insurance premium tax credit for contributions made for purposes of that program.
Relating to the establishment of the Education Savings Account Program to allow certain disadvantaged children and their siblings to use public money to pursue educational alternatives to public schools and an insurance premium tax credit for contributions made for purposes of that program.
Relating to a franchise or insurance premium tax credit for contributions made to certain educational assistance organizations; adding provisions subject to a criminal penalty.