HB 1702 -- Tax Credits for Education-Related Charitable
Donations

Sponsor:  Thompson

This bill authorizes an individual income tax credit for
contributions of $200 or more made to a Missouri nonprofit
educational assistance organization.  Contributions for the
educational expenses of a taxpayer's dependent do not qualify.
The amount of the tax credit will be equal to 50% of the
contribution.

The amount of the tax credit cannot exceed the tax liability of
the taxpayer in any one year.  Any unused credit can be carried
forward for four years.

The cumulative amount of tax credits cannot exceed $10 million
per fiscal year.  The Director of the Department of Economic
Development will establish a procedure to apportion the tax
credits among all nonprofit educational assistance organizations.

The director will annually determine which organizations may be
classified as nonprofit educational assistance organizations.
The bill lists the conditions for qualification.

The bill allows the director to contract with a nonprofit
educational assistance organization to be a designated nonprofit
oversight organization to administer the program.  Contributions
are to be distributed to the educational assistance organization
for student scholarships less up to 2% for administrative costs.

School boards of certain school districts may opt to participate
in this program by adopting a resolution and submitting it to the
Department of Elementary and Secondary Education.

The bill requires the eligible pupil count to be adjusted if a
pupil no longer is enrolled or transfers to another school
because of using the proceeds of an educational scholarship.

The tax credit will apply to all tax years beginning on or after
January 1, 2004.

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:16 am