SB123 Summary

• Increases the income tax credit cap for donations to scholarship granting organizations from $50,000 to $100,000 per individual taxpayer or married couple filing jointly.

• Creates a new utility gross receipts tax credit for taxpayers paying at least $100,000 in aggregate utility taxes, allowing credits up to 75% of actual utility tax liability for donations to scholarship granting organizations.

• Replaces terminology of "failing schools" with "underperforming schools" throughout the Alabama Accountability Act of 2013.

• Requires scholarship granting organizations to obtain audited financial statements annually prepared by certified public accountants and mandates the Department of Revenue conduct audits of each scholarship granting organization at least every three years.

• Expands eligibility for income tax credits to include resident trusts, nonresident trusts, resident estates, and nonresident estates, in addition to individual taxpayers and corporations.