FIRST REGULAR SESSION
SENATE COMMITTEE SUBSTITUTE FOR
SENATE BILL NO. 574
91ST GENERAL ASSEMBLY
TERRY L. SPIELER, Secretary.
1595S.02C
AN ACT
To amend chapter 161, RSMo, by adding thereto one new section relating to the business dropout abatement pilot program.
Section A. Chapter 161, RSMo, is amended by adding thereto one new section, to be known as section 161.706, to read as follows:
161.706. 1. As used in this section, the following terms mean:
(1) "Approved program", a business dropout abatement pilot program established pursuant to this section and approved by the department of elementary and secondary education;
(2) "Eligible student", a resident pupil or dropout of a school district who is determined by the local school board to be eligible to participate in an approved program pursuant to this section and who participates in such program for no less than eight calendar months in the tax year for which a return is filed claiming a credit authorized in this section;
(3) "Net expenditures", only those amounts paid or incurred for the participation of an eligible student participating in an approved program less any amounts received by the qualified taxpayer from any source for the provision of an approved program for an eligible student;
(4) "Qualified taxpayer", an employer who makes expenditures pursuant to this section.
2. For taxable years commencing on or after January 1, 2002, a qualified taxpayer shall be allowed a credit against the tax imposed by chapter 143, RSMo, exclusive of the provisions relating to the withholding of tax as provided in sections 143.191 to 143.265, RSMo, in an amount equal to the lesser of five thousand dollars times the number of eligible students for which the qualified taxpayer is allowed a credit pursuant to this section or the net expenditures made directly or through a fund during a taxable year by the qualified taxpayer for the participation of an eligible student in an approved program established pursuant to this section. No credit shall be allowed for any amounts for which any other credit is claimed or allowed under any other provision of state law for the same net expenditures. No more than seven hundred fifty thousand dollars in tax credits shall be authorized pursuant to this section in any fiscal year.
3. The tax credit allowed by this section shall be claimed by the qualified taxpayer at the time such taxpayer files a return and shall be applied against the income tax liability imposed by chapter 143, RSMo, after all other credits provided by law have been applied. Where the amount of the credit exceeds the tax liability, the difference between the credit and the tax liability shall not be refundable but may be carried forward to any of the taxpayer's four subsequent taxable years.
4. The department of elementary and secondary education shall establish, by rule, guidelines and criteria for approval of business dropout abatement pilot programs established by school districts and businesses and for determining the eligibility of students for participation in approved programs established pursuant to this section. The department shall select several school districts for participation in pilot programs representing various regions of the state and emphasizing districts with high dropout rates. Such determinations for eligibility of students shall be based upon a definition of an at-risk student as established by the department by rule. Businesses shall receive a fifty percent tax credit up to two thousand dollars for up to four years for paying college tuition for students who successfully complete the dropout abatement program, graduate from high school and enter college.
5. A local school board may apply to the department of elementary and secondary education for approval to establish a pilot program. A tax credit may only be received pursuant to this section for expenditures for business dropout abatement pilot programs approved by the department. The school board of each district which has an approved program shall annually certify to the department of elementary and secondary education the number of eligible students participating in the program. The principal of any school in a district which has an approved program may recommend to the local school board those students who do not meet the definition of "at-risk" students established pursuant to this section, and the school board may submit the names of such students and the circumstances which justify the student's participation in an approved program to the department of elementary and secondary education for approval of such student's participation. If approved by the department, such students shall be considered eligible students for participation in an approved program.
6. The department of elementary and secondary education shall provide written notification to the department of revenue of each eligible student participating in an approved program pursuant to this section, the student's school district, the name of the qualified taxpayer approved to receive a tax credit on the basis of such eligible student's participation in an approved program pursuant to this section and the amount of such credit as determined in subsection 2 of this section.
7. No rule or portion of a rule promulgated pursuant to the authority of this section shall become effective unless it has been promulgated pursuant to the provisions of chapter 536, RSMo.