TAX CREDITS FOR CHILDREN WITH DISABILITIES.

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View NCGA Bill Details2011-2012 Session
House Bill 344 (Public) Filed Monday, March 14, 2011
TO ALLOW AN INDIVIDUAL INCOME TAX CREDIT FOR CHILDREN WITH DISABILITIES WHO REQUIRE SPECIAL EDUCATION AND TO CREATE A FUND FOR SPECIAL EDUCATION AND RELATED SERVICES.
Intro. by Stam, Randleman, Jordan, Jones.

Status: Ch. SL 2011-395 (House Action) (Jul 1 2011)

Bill History:

H 344/S.L. 2011-395

Bill Summaries:

  • Summary date: Jul 1 2011 - View Summary

    AN ACT TO ALLOW AN INDIVIDUAL INCOME TAX CREDIT FOR CHILDREN WITH DISABILITIES WHO REQUIRE SPECIAL EDUCATION AND TO CREATE A FUND FOR SPECIAL EDUCATION AND RELATED SERVICES. Summarized in Daily Bulletin 3/14/11, 6/3/11, 6/7/11, and 6/15/11. Enacted July 1, 2011. Sections 1, 3, 4, and 4A are effective for taxable years beginning on or after January 1, 2011, and apply to semesters for which the credit is claimed beginning on or after July 1, 2011, except that transfers under GS 105-151.33(h) shall not be made before the 2012–13 fiscal year. Section 2 is effective for taxable years beginning on or after January 1, 2016, and applies to semesters for which the credit is claimed beginning on or after July 1, 2016. The remainder is effective July 1, 2011.


  • Summary date: Jun 15 2011 - View Summary

    Senate committee substitute, reported in on 6/14/11, makes the following changes to 4th edition. Modifies provisions in the bill that specify changes to the following money specifications found in Sections 2.1, 2.2(m), and 7.31 of House Bill 200, if House Bill 200 becomes law: total 2012-13 appropriation to Department of Public Instruction; total beginning unreserved fund balance for 2011-12; amount to be transferred on June 30, 2011, from unreserved fund balance to the Savings Reserve Account; and the funds to be appropriated for average daily membership for public schools in 2012-13.


  • Summary date: Jun 7 2011 - View Summary

    House amendments make the following changes to 3rd edition. Amendment #1 amends GS 105-151.33 to remove provisions stating that the credit allowed by the act is refundable. Adds language providing that any unused portion of the credit may be carried forward for the succeeding three years.
    Amendment #3 amends GS 105-151.33(d)(3) to provide that a taxpayer may not qualify for a credit for any semester during which the taxpayer’s eligible dependent child was 22 years old or older during the entire semester (previously was 19 years or older).


  • Summary date: Jun 7 2011 - View Summary

    House committee substitute makes the following changes to 2nd edition.
    Adds a section stating that if House Bill 200, 2011 Regular Session becomes law, then Section 2.1 of that act is rewritten as follows. Appropriates $7,425,064,000 (was, $7,450,000,000) to the Department of Public Instruction in 2012-13. Amends the Savings Reserve Account for 2011-12 in Section 2.2.(a) of HB 200. Makes conforming changes. If HB 200 becomes law, adds a Section 7.31 (ADM Adjustment) stating that the funds appropriated for the average daily membership adjustment to public schools will be adjusted to provide $55,882,651 in 2011-12 and $118,151,414 in 2012-13, to modify allotments to charter schools and local school administrative units.


  • Summary date: Jun 3 2011 - View Summary

    House committee substitute makes the following changes to 1st edition. Rewrites proposed GS 105-151.33 to include in the definition of eligible dependent child a child who receives special education or related services on a daily basis. Requires an eligible dependent child to be reevaluated every three years by the local educational agency. Clarifies proposed GS 105-151.33(d), concerning instances in which a taxpayer may not qualify for a credit as follows: (1) the child was placed in a nonpublic school or facility by a public agency at public expense, (2) the child was 19 (previously 22) years old or older during the entire semester, (3) the child graduated from high school prior to the end of the semester, or (4) the child spent any time enrolled as a full-time student taking at least 12 hours of academic credit in a postsecondary educational institution. Creates new subsection (i) to proposed GS 105-151.33 to define special education and related services. Amends proposed GS 115C-472.15 to direct the State Board of Education to use revenues in the fund to reimburse local educational agencies for reevaluations and revised individualized education programs. Makes other clarifying and technical changes. Makes change to the Department of Revenue’s reporting requirement date, from January 1, 2012, to October 1, 2013.


  • Summary date: Mar 14 2011 - View Summary

    Enacts a new GS 105-151.33 to establish a tax credit against imposed income tax for a taxpayer’s child who is (1) a state resident; (2) a child with a disability as defined in GS 115C-106.3(1); (3) has spent at least two semesters in a taxable year in a public school (immediately preceding the taxable year in which a credit is taken to establish initial eligibility) and while enrolled in and attending a public school was determined to require an individualized education program; (4) is a dependent, which entitles the taxpayer to deduct a personal exemption under section 151,(c) of the Internal Revenue Code for the taxable year; and (5) for one or two semesters during the taxable year is enrolled in and attending grades K through 12 in a nonpublic school or in a public school at which tuition is charged in accordance with GS 115C-366.1. Requires that the child have been enrolled in and attended at least the preceding two semesters in a public school for initial eligibility. The credit is equal to the amount the taxpayer paid for tuition and special education and related services expenses up to $3,000 per semester. Provides that, for home schools, the credit is equal to the amount the taxpayer paid for special education and related expenses up to $3,000 per semester. Defines semester for purposes of the credit. Provides for disqualification and reduction of the credit. Enumerates information to be provided to the Secretary of Revenue (Secretary) in order to claim the credit. Provides for a refund if the credit exceeds the amount of income tax imposed on the taxpayer. Requires that the Secretary transfer to the Fund for Special Education and Related Services (Fund) from the net individual income tax collections an amount equal to $2,000 multiplied by the number of credits taken during the fiscal year.
    Effective for taxable years beginning on or after January 1, 2016, and applying to semesters beginning on or after July 1, 2016, further amends proposed GS 105-151.33(h) to require an eligible dependent child to have been enrolled in and attended at least the preceding semester in a public school for initial eligibility.
    Enacts a new Article 32D in GS Chapter 115C to create the Fund to be established as a special, nonreverting revenue fund, with interest and other investment income accrued to it, under the control and direction of the State Board of Education (Board). Requires the Board to use revenue in the Fund for special educational and related services for children with disabilities.
    Requires the Department of Revenue to report to the Revenue Laws Study Committee and Joint Legislative Education Oversight Committee on the administration of the credit by January 1, 2012, with specific information to be included.
    Unless otherwise indicated, effective for taxable years beginning on or after January 1, 2011, and applies to semesters beginning on or after July 1, 2011, except transfers of funds under GS 105-151.33()(h) are not to be made before the 2012-13 fiscal year.