H1104 Summary: Scholarship Funding Corporate Tax Credit

• Creates a corporate tax credit for monetary donations to certified scholarship-funding organizations, with the credit amount reduced by the federal tax benefit received by the donor.

• Establishes a $2 million cap for credits from July 1 to December 31, 2012, increasing to $40 million for calendar year 2013, with potential 35% annual increases if 90% of prior year credits are claimed.

• Requires the Division of Nonpublic Education to certify scholarship-funding organizations that are 501(c)(3) nonprofits, distribute at least 91% of donations to scholarships after 24 months, and award scholarships of up to $4,000 per eligible student annually.

• Limits scholarship eligibility to students from households at or below 225% of federal poverty level and prohibits donors from designating scholarships to specific schools or students or benefiting from family relationships with scholarship organization staff and board members.

• Requires certified scholarship-funding organizations and participating nonpublic schools to submit annual audits, compliance reports, and standardized test performance data; unused donations must be returned to the state treasury if they exceed 20% carryover threshold.