Tax Deduction for Donation to Scholarship Organization

📋For income tax years commencing on or after January 1, 2021, the bill allows an individual or corporate taxpayer to subtract from the taxpayer’s federal taxable income any amount contributed to an eligible scholarship granting organization, to the extent such amount is not claimed as a deduction on the taxpayer’s federal tax return.

An eligible scholarship granting organization is defined as a charitable nonprofit organization that provides scholarships to dependent children for tuition expenses for the child’s enrollment in a private school so long as the child qualifies for free or reduced-cost lunch.

An eligible scholarship organization is required to undergo an annual financial and compliance audit of its accounts and records conducted by an independent certified public accountant and is required to submit the audit to the department of education. The department of education is required to review each audit it receives and submit an annual list to the department of revenue of eligible nonprofit scholarship granting organizations that are in compliance with the requirements specified for the deduction.

⏰ Next Hearing: Thursday February 27th – House Finance Committee

✏️ Prime Sponsors of HB20-1204:

🔴Rep. Kim Ransom (R) – House District 44
🔴Sen. Jim Smallwood (R) – Senate District 4
🔴Sen. Jack Tate (R) – Senate District 27

📖 Read the full bill text here: HB20-1204