HB 1278 -- Tax Credit:  Donations to Scholarship Charities

Co-Sponsors:  Gambaro, Hanaway, Scott, Green (73), Liese, Barry,
Villa, Boucher, Naeger

This bill authorizes a state tax credit for contributions to
authorized scholarship charities.  To qualify as a scholarship
charity, the organization must be a 501(c)(3) charitable
organization and must allocate at least 90% of its annual revenue
for educational scholarships to children attending qualified
schools of their choice.

The credit may be claimed, for all taxable years beginning on or
after January 1, 2003, in an amount equal to 50% of the
taxpayer's contribution to the scholarship charity, but cannot
exceed $50,000 per taxable year for any taxpayer.  The credit is
not refundable but may be carried over for up to four succeeding
taxable years.  The cumulative amount of all scholarship charity
tax credits is limited to $5 million per fiscal year.  The
Director of the Department of Revenue is authorized to allocate
the tax credits as necessary to ensure their maximum use.

Missouri House of Representatives
Last Updated October 11, 2002 at 9:00 am