Adds new Article 31, Equal Opportunity Scholarship Tax Credit, to GS Chapter 105.
Defines a scholarship-funding organization as an organization certified by the Division of Nonpublic Education of the Department of Administration under proposed GS 115C-562.2.
Prescribes the criteria to be met under which a taxpayer corporation may qualify for a tax credit for making a monetary donation to a non-profit scholarship-funding organization. Sets out the formula for calculating the taxpayer’s tax credit based on the amount of the taxpayer’s monetary donation to a scholarship-funding organization. Requires the taxpayer to substantiate a donation to a scholarship-fund with written certification of the donation obtained from the Secretary of Revenue. Sets caps on the total allowable tax credits under proposed Article 31. Prohibits a taxpayer claiming a credit under this section from deducting the donation under any other provision of GS Chapter 105 so as to receive a double benefit. Effective for taxable years beginning on or after January 1, 2012 and applies to donations made after July 1, 2012.
Amends Article 39 of GS Chapter 115C, adding a new Part 2A, Scholarship-Funding Organizations. Includes the definitions of terms as they apply in this Part. Defines a scholarship-funding organization as a NC charitable organization certified by the Division of Nonpublic Education, Department of Administration (Division) for eligibility to receive donations. Defines an eligible student as one that has not yet received a high school diploma and (1) was a full time public school student the previous semester; (2) received a scholarship from an eligible funding organization; or (3) is entering kindergarten or first grade. Student must also belong to a household with an income not exceeding 225% of the federal poverty level. Requires a North Carolina charitable organization to apply annually to the Division for certification as a scholarship-funding organization. Provides criteria the Division is to use to determine an organization’s eligibility for certification as an eligible scholarship-funding organization. Specifies information that a scholarship-funding organization must submit to the Division. Limits scholarships to $4,000 per year, per student. Delineates the obligations of nonpublic schools that receive scholarship funds.
Requires the nonpublic school scholarship-funding organization to remit at minimum twice each school year a scholarship payment certificate to the nonpublic school to be endorsed by at least one of the attending student’s parents or guardians. Includes Division reporting requirements. Includes requirement that the Division report to the Department of Public Instruction (DPI) each year no later than August 1, how many students have received scholarships through a scholarship-funding organization that previously attended a local school administrative unit or a charter school. Directs DPI to decrease the local per pupil allocation to public schools, including charter schools based on the number of students receiving scholarships who attended public schools the previous semester and who are currently enrolled in on public schools. Also requires the Division to report annually, no later than October 1, to DPI and the Joint Legislative Oversight Committee on the learning gains of students receiving donation scholarships; makes the first report due October 1, 2014. Provides guidelines for conducting the evaluation for the report.
Includes additional specifications and deadlines regarding certifications and applications that are the responsibility of the Division.