SB16-154: Tax Credits For Nonpublic Education

• Establishes income tax credit for private school tuition starting January 1, 2017, allowing taxpayers to claim credits when enrolling dependent children in private school or providing scholarships, with credit amounts limited to the lesser of tuition paid/scholarship amount or 50% of state average per pupil revenues (25% for half-time attendance).

• Creates income tax credit of $1,000 for taxpayers using home-based education for children previously enrolled full-time in public school, and $500 for those previously enrolled half-time, starting January 1, 2017.

• Allows unused credits to be carried forward for up to 3 years but prohibits refunds; permits taxpayers to transfer credits to other taxpayers subject to specific limitations including written statements and verification requirements.

• Private schools must issue credit certificates upon taxpayer application and report all issued certificates to the Department of Revenue by December 15 annually, including taxpayer names and identification numbers.

• Grants Department of Revenue rule-making authority and takes effect 90 days after legislative adjournment (August 10, 2016) unless subject to referendum petition, in which case effectiveness depends on voter approval in November 2016 election.