SB 1620 Summary

• Establishes the Florida Sales Tax Credit Scholarship Program allowing taxpayers to claim a 100% sales tax credit for contributions to nonprofit scholarship-funding organizations, with a combined tax credit cap for both the existing and new programs starting at $390 million in fiscal year 2014-2015.

• Expands student eligibility for tax credit scholarships to include students with household income up to 260% of the federal poverty level (starting 2016-2017), with reduced scholarship amounts for higher-income students, and provides priority for students in foster care or out-of-home care.

• Increases the maximum scholarship amount per student and implements more stringent background check requirements for scholarship organization owners and operators, including disqualifications for specific felonies related to fraud, forgery, and Medicaid fraud.

• Requires nonprofit scholarship-funding organizations to maintain surety bonds or letters of credit equal to 25% of anticipated scholarship funds, implement a formal application and approval process through the Department of Education, and submit comprehensive documentation including financial plans and organizational policies.

• Implements a tiered tax credit cap structure that increases from $390 million to $873.6 million as utilization reaches 90% of each tier, with automatic 25% increases thereafter when usage thresholds are met.