HB 1104 -- INCOME TAX CREDIT FOR SPECIAL NEEDS EDUCATION SUPPORT
ORGANIZATIONS

SPONSOR:  Hughes

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Student Achievement by a vote of 6 to 0.

Beginning January 1, 2008, this bill authorizes an income tax
credit equal to 50% of the amount of a contribution to a
nonprofit special needs education support organization.  The
contribution must be at least $100, and the maximum amount of the
tax credit will be $50,000 per taxpayer annually.  The cumulative
amount of tax credits cannot exceed $2 million.  The Department
of Elementary and Secondary Education will determine which
organizations may be classified as eligible organizations for
this credit.  The tax credit may be taken against individual and
corporate income tax, corporate franchise tax, financial
institution tax, and express company tax liability.  The tax
credit is not refundable, but can be carried forward and claimed
for up to four taxable years.

The provisions of the bill will expire on December 31 six years
from the effective date.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $57,971
in FY 2008, $102,147 to $2,102,147 in FY 2009, and $105,211 to
$2,105,211 in FY 2010.  Estimated Income on Other State Funds of
$0 in FY 2008, FY 2009, and FY 2010.

PROPONENTS:  Supporters say that because of changes in the
federal special education law, special education is no longer an
entitlement at private schools, and public schools can limit the
locations where they will give services.  Usually a school
district will take over special education when a child turns
three years old, even if the child is doing well in another
setting.  The scholarships will provide options for these
children.

Testifying for the bill were Representative Hughes; and Missouri
Catholic Conference.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:21 am