MO HB2427

Establishes the "School Choice Tax Credit Act" allowing taxpayers to claim income tax credits for contributions to scholarship granting organizations beginning in tax year 2011.

Individual taxpayers may claim credits up to 50% of tax liability with a 3-year carry-forward; corporate taxpayers may claim credits up to 50% of tax liability capped at $300,000 annually, with total program credits limited to $10 million per fiscal year.

Eligible students must have household income not exceeding 2.5 times the federal free or reduced-price lunch income standard, be enrolled in qualified Missouri schools (public schools outside their district or nonpublic schools), and remain eligible once enrolled regardless of income changes until high school graduation or age 20.

Scholarship granting organizations must be 501(c)(3) tax-exempt entities spending at least 90% of donation revenue on scholarships, allocating scholarships to low-income students proportionate to district demographics, and ensuring 80% of first-time recipients were previously in public schools.

Department of Revenue oversees program implementation, sets compliance standards for scholarship organizations and schools, conducts background checks, audits for fraud, and may bar non-compliant organizations from participation.