Title: Scholarship Funding Corporate Tax Credit
Primary Sponsors: Majority Leader Paul Stam (R),
Representative William Brisson (D), Representative Mike Hager (R),
Representative Marcus Brandon (D)
Bill Status: Referred to Committee on Education
The North Carolina legislature is considering House
Bill 1104, which would create a scholarship tax credit program that would
provide scholarships to students from low-income families to attend the private
or public school of their parents’ choice.
The program, which has strong bipartisan support, would be the
thirteenth scholarship tax credit program in the nation. Last year, North Carolina created a tax
credit for children with disabilities that allows for a tax deduction on
education expenses, including private school tuition.
Program
Type
Corporate Scholarship Tax Credit
Student
Eligibility
- Family income cannot
exceed 225 percent of the federal poverty level
- Attended public schools the previous year or entering kindergarten or first grade
Scholarship
Funding Organization (SFO) Requirements
- Certified by the
Division of Nonpublic Education of the Department of Administration
- Apply annually to
participate in the program
- Use at least 91 percent
of contributions for scholarships
- SFOs with fewer than
24 months of certification must use 100 percent of contributions for
scholarships
- Does not discriminate
on the basis of race, color, ethnicity, or national origin
- Make scholarships
available to more than one school
- Submit to the state:
- Annual financial and
compliance audit by certified public accountant
- Annual report on data of scholarship recipients, donations, and participating schools