HB 2521 Summary

• Increases the minimum percentage of annual revenues that school tuition organizations (STOs) must allocate to educational scholarships or tuition grants from 90% to 95%.

• Applies the 95% allocation requirement to contributions made for income tax credits under sections 43-1183, 43-1184, 43-1089, and 43-1089.03, as well as insurance premium tax credits under sections 20-224.06 and 20-224.07.

• Prohibits STOs from awarding scholarships solely based on donor recommendations, though donors may still recommend beneficiaries for consideration among other factors.

• Requires STOs to display on their websites the percentage and total dollar amount of scholarships awarded to students in two income categories based on national school lunch program eligibility thresholds.

• Updates references to federal nutrition acts from 42 U.S.C. sections 1751-1785 to 42 U.S.C. sections 1751-1793 and modifies notice requirements for taxpayers regarding tax credit eligibility and scholarship swap prohibitions.