AB 2422 Summary

• Establishes a corporate tax credit equal to 50% of monetary contributions to nonprofit education improvement organizations funding K-12 STEAM (science, technology, engineering, math, and arts) programs for taxable years 2015-2019.

• Limits individual tax credits to $200,000 per taxpayer per year with an aggregate cap of $50,000,000 per calendar year, allocated on a first-come, first-serve basis.

• Requires eligible schools to be located in eligible attendance areas and defines qualifying education improvement organizations as nonprofits including art museums, science centers, institutions of higher education, and educational enrichment programs.

• Grants the Franchise Tax Board and State Department of Education joint authority to administer the credit, including certifying contributions, establishing application procedures, and determining EIO eligibility.

• Automatically repeals December 1, 2020, and takes effect immediately as a tax levy.