HB 1735 Summary

• Establishes the "Passport Scholarship Program" providing scholarships to eligible students residing in unaccredited school districts for tuition and fees at qualified nonpublic schools or other educational expenses including transportation.

• Allows taxpayers to claim a tax credit equal to 60% of qualifying contributions made to certified educational assistance organizations, with credits capped at $40 million annually (adjusted for inflation) and allowed to carry forward up to four years.

• Requires educational assistance organizations to spend at least 90% of contribution revenues on scholarships, limits administrative and marketing expenses to tiered percentages based on contribution size, and mandates annual public reporting on scholarship distribution.

• Requires qualified schools to comply with health and safety laws, hold valid occupancy permits, prohibit discrimination in admissions, undergo accreditation within four years, and participate in assessment and reporting requirements while excluding scholarship recipients from school accreditation calculations.

• Authorizes a six-year independent study beginning within one year of program launch to evaluate parental satisfaction, student performance, impacts on public schools, and program effectiveness, with automatic sunset after six years unless reauthorized by the legislature.