SB1243

THE CONTEXT: Under current statute, the amount of credit taxpayers can receive due to voluntary cash contributions to a school tuition organization is as follows: 1) $500 in any taxable year for a single individual or head of household; and 2) $1,000 in any taxable year for a married couple filing a joint return. If a husband and wife file separate returns for a taxable year in which they could have filed a joint return each may claim one-half of the tax credit that would have been allowed for a joint return.

WHAT THE BILL DID: The final vetoed version would increase the individual income tax credit cap for contributions to STO's, effective January 1, 2024, to the following: a) $1,456 for a single individual or head of household; and b) $2,902 for a married couple filing a joint return, repeal the credit for contributions to certified school tuition organizations effective January 1,, and modify the notice required in any printed materials soliciting donations, in applications for scholarships and on its website for school tuition organizations.

WHY IT MATTERED: The practical reason for this bill was to make a concrete adjustment to the existing rule for stos. It would increase the individual income tax credit cap for contributions to STO's, effective January 1, 2024, to the following: a) $1,456 for a single individual or head of household; and b) $2,902 for a married couple filing a joint return, and would also repeal the credit for contributions to certified school tuition organizations effective January 1,, rather than leave the current rule unchanged.