SB740 Summary

• Allows eligible taxpayers (individuals and businesses) a 100% income tax credit for contributions to nonprofit scholarship-funding organizations, with a $10 million annual cap starting July 1, 2013.

• Eligible students must be from households at or below 250% of federal poverty level, reside in school districts with over 1,000 students, and have been enrolled in Arkansas public schools previously; scholarships capped at $4,000 per school year.

• Establishes requirements for nonprofit scholarship-funding organizations including background checks for owners/operators, annual audits, website information, and restrictions on designating scholarships to specific schools or children of owners/operators.

• Requires eligible private schools to comply with state laws, demonstrate financial viability, administer nationally recognized tests, and report student progress and graduation rates.

• Directs Department of Education to contract with qualified researchers to evaluate program outcomes including academic performance, fiscal impact, and effects on public school districts; effective date July 1, 2013.