CA SB1542

Allows a tax credit against personal income tax for monetary contributions to Local Educational Advancement Program (LEAP) organizations that provide fee assistance to K-12 students from low-income families for academic services outside regular school hours, on weekends, or during summer.

Individual taxpayers may claim up to $500 per year in credits; joint filers may claim up to $1,000 per year; credits may be carried forward up to five years if they exceed current year tax liability.

Corporations may claim a credit equal to 50 percent of contributions (capped at $300,000 annually), or 75 percent if they certify they will contribute at least 80 percent of the current year amount in each of the next two consecutive years (also capped at $300,000 annually).

Eligible LEAP organizations must be 501(c)(3) nonprofits or government entities that use at least 97 percent of contributions for fee assistance and serve students from multiple schools.

Total tax credits under both sections are capped at $100 million for individuals and $200 million for corporations, with potential 25 percent annual increases once 90 percent of the cap is utilized.