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2) was eligible to attend a government

Appendix B:

school in a preceding semester or is start-

The Public Education

ing school for the first time, and is not

enrolled in a public elementary or sec-

Tax Credit Act

ondary school;3 or

(Donation and Family-Use

3) is not a resident of the school district

Education Tax Credits)

of the public school in which the student

is enrolled.

Summary: This legislation creates an educa-

The eligible student must otherwise be in

tion tax credit for direct payment of education-

compliance with state education law.4 Notwith-

al expenses and for contributions to organiza-

tions that provide educational scholarships to

standing the above, the student for whom some-

eligible students in order to allow all parents to

one is claiming a credit against property taxes

choose the best education for their children.

must be a resident of the school district in which

that person is claiming the credit.5

Section 1: Title

E) "Scholarship organization" means an orga-

1

The Public Education Tax Credit Act

nization that receives donations from taxpay-

ers and gives educational scholarships to eligi-

ble students.

Section 2: Definitions

F) "Parent" includes a guardian, custodian,

A) "Program" means the program established

or other person with authority to act on

by the Public Education Tax Credit Act.

behalf of the student.

B) "Department" means the state Department

G) "Educational scholarships" means grants

of Revenue.

to students to cover part or all of the educa-

tional expenses of an eligible student.

C) "Educational expenses" means tuition at a

qualifying school; transportation related to edu-

H) "Funding benchmark" means the dollar

cational activities; tutoring services; educational

amount equal to the average per-pupil expen-

association membership or testing fees; and

ditures for public schools from both state

educational materials such as books, school

and local government sources during the

supplies, and academic lessons and curricula.

year of enactment, with this amount adjust-

Educational expenses for students taught in a

ed each year in the same manner that brack-

nonpublic home-based program do not include

ets are adjusted in Section 1(f) of the Internal

expenses for tutoring or academic lessons if the

Revenue Code.

parent conducts them. Educational expenses for

a student who is enrolled in a public elementary

I) "Child credit cap" means the percentage of

and/or secondary school in our state, but who is

the funding benchmark a family is eligible to

not a resident of that school district include only

use for each eligible student as determined in

transportation and out-of-district tuition

Section 5.

expenses. Educational expenses do not include

athletic fees or expenses.2

J) "Government school" means a public gov-

ernment school as defined in Section x of

D) "Eligible student" means a student who:

state law.

1) is a resident of the state no less than

Section 3: Basic Elements of the Public

age 5, is no more than age 18, and has

Education Tax Credit Act6

not graduated from high school; and

36