Bill Text: OR HB2291 | 2011 | Regular Session | Engrossed
Bill Title: Relating to tax credit for contributions to education.
Spectrum: Unknown
Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2291 Detail]
Download: Oregon-2011-HB2291-Engrossed.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 1555
A-Engrossed
House Bill 2291
Ordered by the House April 18
Including House Amendments dated April 18
Introduced and printed pursuant to House Rule 12.00. Presession
filed (at the request of House Interim Committee on Education)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Creates tax credit for contributions to qualified scholarship
granting organization. Authorizes qualified scholarship granting
organization to grant scholarships to { + low-income + }
eligible students for attendance at qualified public or private
schools. Sets forth standards for scholarship granting
organizations and qualifying schools.
A BILL FOR AN ACT
Relating to tax credit for contributions to education.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 4 of this 2011 Act are added to
and made a part of ORS chapter 315. + }
SECTION 2. { + As used in sections 2 to 4 of this 2011 Act:
(1) 'Educational expenses' means expenses at a qualifying
school for:
(a) Tuition and fees for educational services.
(b) Transportation related to educational activities.
(c) Educational materials, including books, school supplies,
academic lessons, instructional software and academic curricula.
(d) Costs of participating in evaluation and performance
reporting under ORS 329.085 and 329.105.
(2) 'Educational scholarship' means a grant from a scholarship
granting organization to a low-income eligible student to cover
part or all of the educational expenses of the student.
(3) 'Low-income eligible student' means a student who:
(a) Is a member of a household with total annual income, for
the year preceding the year in which a student would receive an
educational scholarship, that does not exceed the income standard
used to qualify for a free or reduced-price lunch under the
United States Department of Agriculture's current Income
Eligibility Guidelines;
(b) Is a resident of this state;
(c) Is five years of age or older but not more than 21 years of
age;
(d) Has not graduated from high school; and
(e)(A) Was enrolled in the student's resident school district
in the previous year; or
(B) Was not enrolled in the student's resident school district
in the previous year, but was eligible to attend a public school
in this state in a preceding academic term or is starting school
in this state for the first time.
(4) 'Parent' includes a legal guardian or custodian, or other
person with legal authority to act on behalf of the student.
(5) 'Qualifying school' has the meaning given that term in
section 5 of this 2011 Act.
(6) 'Scholarship granting organization' means an organization
that has been certified by the Department of Revenue to receive
taxpayer contributions under section 3 of this 2011 Act and that:
(a) Distributes at least 90 percent of the taxpayer
contributions on educational scholarships;
(b) Deposits all interest earnings and proceeds from
investments in the educational scholarships;
(c) Qualifies as a tax-exempt organization under section
501(c)(3) of the Internal Revenue Code; and
(d) Submits a report to the department by June 1 of each year
with information prepared by a certified public accountant
regarding the scholarship grants awarded by the scholarship
granting organization in the previous calendar year, under
standards approved by the department by rule. + }
SECTION 3. { + (1) A credit against the taxes otherwise due
under ORS chapter 316, or under ORS chapter 317 or 318 if the
taxpayer is a corporation, shall be allowed for contributions
made to a scholarship granting organization during the tax year.
The credit allowed under this section shall equal the amount of
total contributions made to a scholarship granting organization
for educational scholarships, up to 50 percent of the taxpayer's
total state tax liability for the tax year.
(2) Any tax credit otherwise allowable under this section that
is not used by the taxpayer in a tax year because the amount of
the credit would exceed 50 percent of the taxpayer's state tax
liability may be carried forward and offset against the
taxpayer's tax liability for the next succeeding tax year. Any
credit remaining unused in the next succeeding tax year may be
carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year
may be carried forward and used in the third succeeding tax year,
but may not be carried forward for any tax year thereafter.
(3) In the case of a credit allowed under this section for
purposes of ORS chapter 316:
(a) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
(b) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
(c) A husband and wife who file separate returns for a taxable
year may each claim a share of the tax credit that would have
been allowed on a joint return in proportion to the contribution
of each.
(d) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed under this section shall be prorated or computed
in a manner consistent with ORS 314.085.
(4) The Department of Revenue shall establish by rule policies
and procedures for certifying taxpayers as eligible for the
credits allowed under this section. + }
SECTION 4. { + (1) A scholarship granting organization shall:
(a) Distribute quarterly scholarship payments on or before
September 1, December 1, March 1 and June 1 each school year,
made out to the parent of a low-income eligible student who is
awarded a scholarship from taxpayer contributions received under
section 3 of this 2011 Act and delivered to the qualifying school
where the low-income eligible student is enrolled. The parent
must endorse the payment check before the payment check can be
deposited by the qualifying school.
(b) Provide a receipt in a form approved by the Department of
Revenue to taxpayers for their contributions made to the
scholarship granting organization.
(c) Ensure that the maximum amount of a scholarship is not more
than 80 percent of the amount of the statewide average of the
General Purpose Grant per ADMw as calculated under ORS 327.013.
(d) Ensure that scholarships are granted to the parents of
low-income eligible students.
(e) Conduct background checks on prospective and current
employees and board members to determine any conviction of a
crime or issuance of a judgment or injunction that bears a
demonstrable relationship to the appropriate use of contributed
funds.
(f) Ensure that:
(A) Scholarships are portable during the school year and may be
used at any qualifying school that accepts the low-income
eligible student for admission; and
(B) Scholarships are properly prorated among different
qualifying schools if a low-income eligible student transfers
between qualifying schools during a school year.
(g) Ensure that a qualifying school accepting low-income
eligible students does not have paid staff or board members or
family of paid staff or board members in common with the paid
staff or board members or family of paid staff or board members
of the scholarship granting organization. As used in this
paragraph, ' family' means a spouse, child, sibling or parent of
the paid staff or board member.
(2) The Department of Revenue shall adopt rules necessary for
the administration and enforcement of this section. + }
SECTION 5. { + (1) As used in this section, 'qualifying school
' means a public or private school that accepts scholarship
payments distributed under section 4 of this 2011 Act for
low-income eligible students, as that term is defined in section
2 of this 2011 Act.
(2) If the qualifying school is a private school, the
qualifying school shall:
(a) Meet all criteria for registration under ORS 345.505 to
345.575;
(b) For the purpose of conducting criminal records checks under
ORS 181.534, send to the Department of Education the fingerprints
of each person described in ORS 326.603 (1)(a) to (d), and any
other necessary information, and use the information from the
criminal records check to exclude from employment any person who
might reasonably pose a threat to the safety of students at the
qualifying school; and
(c) Prior to September 1 of each year, provide a report to the
Superintendent of Public Instruction that includes:
(A) The number of scholarship students enrolled at the
qualifying school during the previous school year; and
(B) Academic assessment information based upon student
assessment by the qualifying school during the previous school
year, pursuant to rules for disclosure of student records adopted
by the State Board of Education under ORS 326.565. + }
SECTION 6. { + Sections 2 to 4 of this 2011 Act apply to tax
years beginning on or after January 1, 2012. + }
SECTION 7. { + Scholarships awarded under sections 2 to 4 of
this 2011 Act are first available for the 2012-2013 school
year. + }
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