SB 0824 Authorizes state income tax credit for sponsoring and mentoring programs for at-risk students
Sponsor:Russell
LR Number:S3523.01I Fiscal Note:3523-01
Committee:Ways and Means
Last Action:02/24/98 - Hearing Conducted S Ways & Means Committee Journal page:
Title:
Effective Date:August 28, 1998
Full Bill Text | All Actions | Available Summaries | Senate Home Page | List of 1998 Senate Bills
Current Bill Summary

SB 824 - This act establishes an income tax credit of up to two thousand dollars for expenses paid by a qualified taxpayer for the participation of a student in a sponsorship and mentoring program established by a school district and approved by the Department of Elementary and Secondary Education.

The tax credit shall be allowed for taxable years commencing on or after January 1, 1998, and the credit allowed shall not exceed two thousand dollars per eligible student. The tax credit shall be claimed at the time such taxpayer files a return and shall be applied against income tax liability after all other credits 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. A credit shall only be allowed for a student who participates in the program for at least eight months during the tax year for which the credit is claimed.

The Department shall establish guidelines and criteria for approval of sponsorship and mentoring programs and for determining the eligibility of students which shall be based upon a definition of an at-risk student as established by the Department.

A school board may establish a sponsorship and mentoring program and apply to the Department for approval of the program. The school board shall annually certify, to the Department, the number of eligible students participating in the program. A school principal may recommend for participation, to the school board, students who do not meet the definition of "at-risk" students, and the school board may submit the names of the students and the circumstances which justify the their participation to the Department for approval.

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, the student's school district, the name of the qualified taxpayer approved to receive a tax credit and the amount of the credit.
OTTO FAJEN