AB 2582 Summary

• Allows tax credits for taxable years beginning January 1, 2015 for monetary contributions to public schools supporting cocurricular activities or to educational improvement organizations supporting innovative programs in public schools

• Personal income tax credit limited to $500 for individual returns and $1,000 for joint returns; corporation tax credit limited to 50-75% of tax liability (up to $300,000) depending on contribution history

• Establishes separate corporation tax credit for contributions to education scholarship-granting organizations that provide tuition assistance to moderate- to low-income students attending qualified schools

• Combined total credits under all three sections capped at $500 million annually, with potential 3% annual increases after 90% of the cap is utilized; unused credits may be carried forward up to 5 years

• Requires Franchise Tax Board to promulgate implementing rules and regulations; takes effect immediately as a tax levy