Bill Text: IN HB1003 | 2013 | Regular Session | Engrossed
Bill Title: Nonpublic school scholarships.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2013-05-13 - Public Law 211 [HB1003 Detail]
Download: Indiana-2013-HB1003-Engrossed.html
Citations Affected: IC 6-3.1; IC 20-51.
Synopsis: School scholarships. Provides that a taxpayer may carry
forward a school scholarship income tax credit for a taxable year that
begins after December 31, 2012. Specifies eligibility standards for
choice scholarships. Increases the choice scholarship cap for students
enrolled in grades 1 through 8. Makes various administrative changes
to the choice scholarship program. Removes a provision that allows the
department to make only a partial choice scholarship grant. Makes
conforming amendments.
Effective: January 1, 2013 (retroactive); July 1, 2013.
(SENATE SPONSORS _ ECKERTY, YODER, KRUSE, LEISING)
January 15, 2013, read first time and referred to Committee on Education.
February 11, 2013, amended, reported _ Do Pass. Referred to Committee on Ways and
Means pursuant to Rule 127.
February 18, 2013, amended, reported _ Do Pass.
February 20, 2013, read second time, ordered engrossed. Engrossed.
February 21, 2013, read third time, passed. Yeas 57, nays 36.
February 27, 2013, read first time and referred to Committee on Education and Career Development.
March 28, 2013, amended, reported favorably _ Do Pass; reassigned to Committee on Tax and Fiscal Policy.
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A BILL FOR AN ACT to amend the Indiana Code concerning
education and tax.
(b) A taxpayer is not entitled to a carryover, carryback, or refund of an unused credit.
(c) This section expires January 1, 2017.
(b) If the credit provided by this chapter exceeds the taxpayer's state tax liability for the taxable year for which the credit is first claimed, the excess may be carried forward to succeeding taxable
years and used as a credit against the taxpayer's state tax liability
during those taxable years. Each time the credit is carried forward
to a succeeding taxable year, the credit is reduced by the amount
that was used as a credit during the immediately preceding taxable
year. The credit provided by this chapter may be carried forward
and applied to succeeding taxable years for nine (9) taxable years
following the unused credit year.
(c) A taxpayer is not entitled to a carryback or refund of any
unused credit.
(1) has legal settlement in Indiana;
(2) is at least five (5) years of age and less than twenty-two (22) years of age on the date in the school year specified in IC 20-33-2-7; and
(3) meets at least one (1) of the following conditions:
(A) The individual is:
(i) a child with a disability who requires special education and for whom an individualized education program has been developed under IC 20-35; and
(ii) a member of a household with an annual income of not more than two hundred percent (200%) of the amount required for the individual to qualify for the federal free or reduced price lunch program.
(B) The individual resides in the attendance zone of a public school that has been placed in either:
(i) the lowest category or designation of school improvement under IC 20-31-8-4 under the categories or designations in effect on June 30, 2013; or
(ii) the lowest category or designation for academic growth and either one (1) of the two (2) lowest categories or designations for performance under IC 20-31-8-4 under the categories or designations established after June 30, 2013, for at least two (2) years;
and except as provided in IC 20-51-4-2.5, the individual is
a member of a household with an annual income of not
more than one hundred fifty percent (150%) of the amount
required for the individual to qualify for the federal free or
reduced price lunch program. An individual to whom this
clause applies is not required to attend the public school
before becoming eligible for a choice scholarship, and may
not be required to return to the public school if the public
school is placed in higher categories or designations under
IC 20-31-8-4.
(C) Except as provided in IC 20-51-4-2.5, the individual is
a member of a household with an annual income of not
more than one hundred fifty percent (150%) of the amount
required for the individual to qualify for the federal free or
reduced price lunch program and the individual was
enrolled in kindergarten through grade 12:
(i) before July 1, 2014, in a public school, including a
charter school, in Indiana; and
(ii) after June 30, 2014, in a public school, not including
a charter school, in Indiana;
for at least two (2) semesters immediately preceding the
first semester for which the individual receives a choice
scholarship under IC 20-51-4.
(D) The individual or a sibling of the individual:
(i) received a scholarship from a scholarship granting
organization under IC 20-51-3 or a choice scholarship
under IC 20-51-4 in a preceding school year, including a
school year that does not immediately precede a school
year in which the individual receives a scholarship from
a scholarship granting organization under IC 20-51-3 or
a choice scholarship under IC 20-51-4; and
(ii) except as provided in IC 20-51-4-2.5, is a member of
a household with an annual income of not more than one
hundred fifty percent (150%) of the amount required for
the individual to qualify for the federal free or reduced
price lunch program.
(1) is located in Indiana;
(2) requires an eligible
(3) voluntarily agrees to enroll an eligible
(4) is accredited by either the state board or a national or regional accreditation agency that is recognized by the state board;
(5) administers the Indiana statewide testing for educational progress (ISTEP) program under IC 20-32-5;
(6) is not a charter school or the school corporation in which an eligible
(7) submits to the department only the student performance data required for a category designation under IC 20-31-8-3.
(1) has legal settlement in Indiana;
(2) is at least five (5) years of age and less than twenty-two (22) years of age on the date in the school year specified in IC 20-33-2-7;
(3) either has been or is currently enrolled in a participating school; and
(4) is a member of a household with an annual income of not more than two hundred percent (200%) of the amount required for the individual to qualify for the federal free or reduced price lunch program.
(1) Provide a receipt to taxpayers for contributions made to the scholarship granting organization that will be used in a school scholarship program. The department of state revenue shall prescribe a standardized form for the receipt issued under this subdivision. The receipt must indicate the value of the contribution and part of the contribution being designated for use in a school scholarship program.
(2) Allow a taxpayer to designate a participating school for which the taxpayer's contribution must be used as scholarships.
(3) Use not more than ten percent (10%) of the total amount of contributions for administrative costs.
students.
(4) (5) Conduct criminal background checks on all the scholarship
granting organization's employees and board members and
exclude from employment or governance any individual who
might reasonably pose a risk to the appropriate use of contributed
funds.
(5) (6) Make the reports required by this chapter.
(b) The department may not award more than:
(1) seven thousand five hundred (7,500) choice scholarships for the school year beginning July 1, 2011, and ending June 30, 2012; and
(2) fifteen thousand (15,000) choice scholarships for the school year beginning July 1, 2012, and ending June 30, 2013.
The department shall establish the standards used to allocate choice scholarships among eligible choice scholarship students.
student at the eligible school selected by the eligible individual
choice scholarship student for a school year that the eligible
individual (or the parent of the eligible individual) choice
scholarship student (or the parent of the eligible choice
scholarship student) would otherwise be obligated to pay to the
eligible school.
(2) An amount equal to:
(A) ninety percent (90%) of the state tuition support amount
determined under section 5 of this chapter if the eligible
individual choice scholarship student is a member of a
household with an annual income of not more than the amount
required for the individual to qualify for the federal free or
reduced price lunch program; and
(B) fifty percent (50%) of the state tuition support amount
determined under section 5 of this chapter if the eligible
individual choice scholarship student is a member of a
household with an annual income of not more than one
hundred fifty percent (150%) of the amount required for the
individual eligible choice scholarship student to qualify for
the federal free or reduced price lunch program.
(3) If the eligible individual choice scholarship student is
enrolled in grade 1 through 8, the maximum choice scholarship
that the eligible individual choice scholarship student may
receive for a school year:
(A) beginning before July 1, 2013, is four thousand five
hundred dollars ($4,500);
(B) beginning after June 30, 2013, and before July 1, 2014,
four thousand six hundred dollars ($4,600); and
(C) beginning after June 30, 2014, four thousand seven
hundred dollars ($4,700).
STEP ONE: Determine the school corporation in which the eligible
STEP TWO: Determine the amount of state tuition support that the school corporation identified under STEP ONE is eligible to receive under IC 20-43 for the calendar year in which the current
school year begins, excluding amounts provided for special
education grants under IC 20-43-7 and career and technical
education grants under IC 20-43-8.
STEP THREE: Determine the result of:
(A) the STEP TWO amount; divided by
(B) the current ADM (as defined in IC 20-43-1-10) for the
school corporation identified under STEP ONE for the
calendar year used in STEP TWO.
(b) An eligible
(b) The department shall approve an application for an eligible school within fifteen (15) days after the date the school requests to participate in the choice scholarship program.
(c) The department shall approve an application for a choice scholarship student within fifteen (15) days after the date the student requests to participate in the choice scholarship program.
(d) Each year, at a minimum, the department shall accept applications from March 1 through September 1 for:
(1) choice scholarship students; or
(2) eligible schools;
for the upcoming school year.
JULY 1, 2013]: Sec. 10. The department may distribute any part of a
the choice scholarship to the eligible individual (or the parent of the
eligible individual) choice scholarship student (or the parent of the
eligible choice scholarship student) for the purpose of paying the
educational costs described in section 4(1) of this chapter. For the
distribution to be valid, the distribution must be endorsed by both the
eligible individual (or the parent of the eligible individual) choice
scholarship student (or the parent of the eligible choice scholarship
student) and the eligible school providing educational services to the
eligible individual. choice scholarship student.