HB 1604 Summary

• Allows taxpayers to claim a credit against state income taxes, insurance premium taxes, and oil and gas severance taxes for voluntary cash contributions to school tuition organizations, with a maximum credit of $500 per tax year.

• Defines "school tuition organization" as a 501(c)(3) charitable organization that allocates at least 90% of annual revenue to educational scholarships or tuition grants for nonpublic school attendance.

• Requires nonpublic schools receiving contributions to not discriminate based on race, color, sex, handicap, or national origin, and to maintain educational standards equivalent to state public school standards.

• Prohibits taxpayers from claiming the contribution as both a tax credit and a deduction, and prevents taxpayers from designating contributions for the direct benefit of their own dependents.

• Permits unused tax credits to be carried forward for five succeeding tax years; effective January 1, 2015.