HB 1771 Summary

• Establishes an income tax credit for businesses that contribute to eligible nonprofit scholarship-funding organizations, allowing 100% of contributions as a credit against state income tax, premium taxes, or corporate income tax.

• Creates a scholarship program for students qualifying for free or reduced-price school lunches, with maximum scholarship of $3,750 per student per year for enrollment in eligible private schools.

• Limits total annual tax credits to $88,000,000 statewide with at least 1% reserved for small businesses (defined as 200 or fewer employees and net worth not exceeding $5,000,000).

• Requires eligible nonprofit organizations to undergo annual independent financial audits, maintain separate scholarship and operating accounts, and comply with background check requirements for owners and operators.

• Prohibits eligible private schools from discriminating, requires them to administer nationally norm-referenced tests, employ qualified teachers, and report student performance data to an independent research organization selected by the Department of Education.