Senate Bill 288 Summary

• Creates an adjusted gross income tax credit for charitable donations to 501(c)(3) organizations that benefit public elementary or high schools in Indiana, effective January 1, 2011.

• Allows individual taxpayers a credit equal to 50% of donations, capped at $1,000 for single returns or $2,000 for joint returns.

• Allows corporate taxpayers a credit equal to 50% of donations, capped at the greater of 10% of the corporation's adjusted gross income tax liability or $10,000.

• Makes the credit refundable, with excess credits exceeding tax liability refunded to the taxpayer from the state general fund.

• Applies to taxable years beginning after December 31, 2010, with the provision expiring December 31, 2012.