Bill Summary for S 608 (2013-2014)

Summary date: 

Apr 2 2013

Bill Information:

View NCGA Bill Details2013-2014 Session
Senate Bill 608 (Public) Filed Tuesday, April 2, 2013
A BILL TO BE ENTITLED AN ACT TO CREATE A TAX CREDIT FOR CORPORATIONS MAKING DONATIONS TO FUND DIVERSITY SCHOLARSHIPS.
Intro. by Clark.

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Bill summary

Adds new Part 11, "Diversity Scholarships," to GS Chapter 115C, Article 16, establishing the Fund for Diversity Scholarships (Fund)as a special revenue fund consisting of monetary donations andunder the control of the State Board of Education (SBE). Provides that interest and investment income earned by the Fund accrues to the Fund and that revenue in the Fund does not revert. Defines terms as applicable in new Part 11 as follows: (1) Department means the Department of Public Instruction (DPI), and(2) diversity scholarship means funds provided to local boards of education to pay tuition or transportation expenses of eligible students.Defines an eligible studentas one who (a) is enrolled in or entering grades six through 12, and (b) will attend a public school located in a local school administrative unit (LEA) where the student does not reside and where during the preceding school year,less than 20% of the student body was comprised of students of thesame race or ethnicityas the eligible student.

Directs the SBE to award annual diversity scholarships to pay the public school tuition of eligible students under the provisions of GS 115C-366.1(b), which prohibits the tuition charge for a student from exceeding the amount of per pupil local funding. Directs the SBE to make awards of the funds directly to the LEA where student will be enrolled no later than August 1, in the order in which the applications are received. Requires the SBE to make annual reports, beginningin October 2014,on the awards of supplemental academic scholarships and specifies the data regarding to be included in the report.

Makes the provisions ofproposed Part11 effective January 1, 2014.

Adds a new Article 3L, "Diversity Scholarship Tax Credit," to Subchapter I of GS Chapter 105 to providea tax credit against the corporate income taxes levied in Part 1 of GS Chapter 105, Article 4 or the tax levied on insurance companies under Article 8B of GS Chapter 105. Provides that a qualifying taxpayer who makes and substantiates, as required in proposed GS 105-129.01, a monetary donation to the Fund established in new GS 115C-238.101 is allowed to take a tax credit equal to the amount of the donation to the Fund. Prohibits the taxpayer from claiming a double benefit by deducting this donation under any other provision of GS Chapter 105.

Requiresany taxpayer claiming a credit under this section to make the taxpayer's records available to the Secretary of Revenue for examination to determine and verify the donation. Places the burden of proving eligibility for the tax credit on the taxpayer and provides that a taxpayer who fails to maintain adequate records to substantiate the donation will not qualify for the tax credit.

Makes the provisions of proposed Article 31 effective for taxable years beginning in or after January 1, 2014.

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