Get the Daily News Digest in your inbox each morning. Sign Up

Bill would expand tax credit available under Accountability Act

The Alabama Senate on Tuesday approved legislation to increase the allowable tax credit for individuals who donate to private school scholarships through the Alabama Accountability Act.

The 2013 law allows for tax credit-funded scholarships for families leaving the state’s lowest-performing public schools. There also is a separate $30 million-per-year scholarship fund for private school tuition. Businesses and individuals who donate to the fund receive income tax credits. Seven scholarship granting organizations, or SGOs, collect and distribute the money to low-income families.

Senate Bill 261 by Sen. Dan Roberts, R-Mountain Brook, does not change that $30 million cap but expands the allowable credit from 50% of an individual’s tax burden to 100%, capped at $100,000. The bill does not change corporations’ possible tax credits.

Sens. Del Marsh, R-Anniston, and Sam Givhan, R-Huntsville, are co-sponsors on the bill.

The bill gives SGOs three years to spend a donation rather than the current one year.

“That allows for better budget management,” Roberts said about allowing SGOs to spread money over multiple years.

Rep. Charlotte Meadows, R-Montgomery, is sponsoring House Bill 393,  the House version of Roberts’ bill.

Get the Daily News Digest in your inbox each morning.

This field is for validation purposes and should be left unchanged.

Web Development By Infomedia