Bill Summary:

The bill establishes a private school tuition income tax credit commencing on or after January 1, 2021, that allows any taxpayer to claim a credit when the taxpayer enrolls a qualified child in a private school or the taxpayer provides a scholarship to a qualified child for enrollment in a private school. The private school issues the taxpayer a credit certificate and the amount of the credit is:

For full-time attendance, an amount equal to either the tuition paid or the scholarship provided to a qualified child, as applicable, or 50% of the previous year's state average per pupil revenues, whichever is less; and For half-time attendance, an amount equal to either the tuition paid or the scholarship provided to a qualified child, as applicable, or 25% of the previous year's state average per pupil revenues, whichever is less.

The bill also establishes a home-based education income tax credit commencing on or after January 1, 2021, that allows any taxpayer who uses home-based education for a qualified child to claim an income tax credit in an amount equal to:

$1,000 for a taxpayer who uses home-based education for a qualified child who was enrolled on a full-time basis in a public school in the state prior to being taught at home; and $500 for a taxpayer who uses home-based education for a qualified child who was enrolled on a half-time basis in a public school in the state prior to being taught at home.

Both credits may be carried forward for 3 years but may not be refunded. In addition, the credits may be transferred, subject to certain limitations.

(Note: This summary applies to this bill as introduced.)

CEA Position Rationale: This is ultimately still a voucher program. In creating tax credits for home school and/or private school this is stull a reduction in funds available to fund public schools. 

Tier: 2