CS/HB 1009 - Florida Tax Credit Scholarship Program

• Transfers and restructures the Florida Tax Credit Scholarship Program from the tax code (s. 220.187) to education law (s. 1002.395), establishing it as a scholarship program for students qualifying for free or reduced-price lunch, with eligibility income limit increased from 200% to 230% of federal poverty level.

• Establishes a tax credit cap of $140 million for fiscal year 2010-2011, with automatic 25% increases when annual tax credit usage reaches 90% or more of the cap, and allows unused credits to carry forward for up to 3 years.

• Creates five new tax credit provisions allowing 100% credits for contributions to scholarship organizations: oil and gas production tax (s. 211.0251), sales and use tax (s. 212.1831), corporate income tax (s. 220.1875), alcoholic beverage taxes (s. 561.1211), and insurance premium tax (s. 624.51055), with varying limitations and caps per tax type.

• Requires eligible private schools receiving over $250,000 in scholarship funds to contract annually with certified public accountants to perform agreed-upon procedures and report on financial controls and proper use of scholarship funds; limits participating schools to grades K-12.

• Restricts scholarship transfers to single transactions only (unless all taxpayer assets transfer), requires Commissioner of Education authority to deny/suspend school participation based on owner/operator misconduct history, and provides Department of Education oversight including random site visits and annual reporting to legislative leadership.