HB2778 H ED AM #1
White 336
The Committee on Education moved to amend the bill on page 1, after the enacting clause, by striking out the remainder of the bill and inserting in lieu thereof the following:
ARTICLE 21 PERSONAL INCOME TAX
§11-21-25. Credit for certain educational expenses.
(a) Definitions. – For the purposes of this section, the following terms shall have the
meanings ascribed to them in this subsection:
(1) “Dependent child” means a child that the taxpayer claims as a dependent on his or her personal income tax pursuant to §11-21-1 et seq. of this code.
(A) A private, parochial or church school, school of a religious order or other nonpublic
school which elects to comply with the provisions of §18-28-1 et seq. of this code; or
(B) A home school in compliance with §18-8-1(c) of this code.
(3) "Qualified educational expenses" include:
(A) “Tuition”, which means the sum of money charged for teaching or instruction by a nonpublic school;
(B) Transportation costs, which means fees for transportation paid to a fee-for-service transportation provider for the student to travel to and from a nonpublic school;
(C) “Curriculum”, which means a complete course of study for a particular content area or grade level, including any supplemental materials required by the curriculum;
(D) “Textbooks”, which means books that are assigned for use in the study of a particular subject or course at the nonpublic school;
(E) “Lab supplies”, which means materials needed for completion of laboratory projects associated with a particular subject or course at the nonpublic school;
(F) “Educational technology” which means computers, machinery or other equipment necessary for the completion of coursework at the nonpublic school; and
(G) “Tutoring services”, which means private instruction by a business or individual; Provided, That the individual is not a parent, stepparent, legal guardian or sibling of the dependent child.
(b) Qualifications for Credit. –
(1) A parent or legal guardian of a dependent child who attends a nonpublic school shall be allowed a credit against the taxes imposed by this article equal to the amount of qualified educational expenses paid by the parent or legal guardian in the tax year, up to a maximum amount of $3000 per dependent child: Provided, That the parent or legal guardian may not receive a credit for any qualified expenses paid on behalf of the dependent child by the Hope Scholarship program pursuant to §18-31-1 et seq. of this code or through a 529 account distribution pursuant to 26 U.S.C. §529 and §18-30-1 et seq. of this code.
(2) This tax credit is available only as a credit against state personal income taxes actually owed pursuant to §11-21-1 et seq. of this code.
(3) Any credit authorized by this section which exceeds the amount of tax imposed by this article in any tax year is forfeited and may not be carried forward or carried back to apply to other tax years.
(c) Forms, instructions and regulations.— The Tax Commissioner shall prescribe and supply all necessary instructions and forms for the administration of this section. The Tax Commissioner may propose rules for legislative approval in accordance with §29A-3-1 et seq. of this code.
(d) Effective Date. – The provisions of this section shall apply for the taxable years beginning after December 31, 2021. As to the taxable years beginning prior to that date, the provisions of this article as then in effect shall apply and be controlling, and for that purpose, prior law is completely preserved.
Adopted
Rejected