HB 1316 Summary

• Limits the existing adjusted gross income tax deduction for unreimbursed education expenditures at nonpublic schools to taxable year 2011 only.

• Creates a new refundable income tax credit for taxable years beginning after December 31, 2011, for unreimbursed education expenditures at public schools or accredited nonpublic schools.

• Restricts the new education credit to "qualifying taxpayers" with household income not exceeding 350% of the federal poverty level.

• Provides maximum credit amount of $1,000, with the actual credit calculated as a percentage of education expenditures ranging from 20% to 100% based on household income level.

• Makes the credit refundable, meaning excess credits beyond tax liability are returned to the taxpayer as a refund.