HB 1642 Summary

• Allows taxpayers a tax credit equal to 35% of wages paid to qualified high school students for summer employment, effective for tax years beginning January 1, 2011.

• Defines qualified high school students as juniors or seniors with at least a 2.0 GPA, meeting attendance requirements, and eligible for free or reduced-price school lunches.

• Limits tax credit to $50,000 per taxpayer per year, with unused credits carried forward up to 4 years, and requires minimum wages of $100 to claim the credit.

• Caps cumulative tax credits statewide at $3 million per fiscal year, with the Department of Elementary and Secondary Education establishing procedures to verify student eligibility and track participants.

• Program automatically sunsets December 31 six years after enactment unless reauthorized by the General Assembly, with subsequent reauthorization sunsetting after 12 years.