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amount available for personal use).

A) Individuals and corporations may claim a

Public Education Tax Credit (donation)

I) For an individual taxpayer or a married cou-

against relevant taxes detailed in Section 4 by

ple filing jointly, the amount of the Public

contributing to scholarship organizations or

Education Tax Credit claimed shall equal the

by contributing directly to the payment of an

eligible student's educational expenses.7

total direct payments for educational expenses

of eligible students (personal use credit) plus

any contributions to scholarship organiza-

B) Parents may claim a separate Public

tions (donation credit) during the taxable year

Education Tax Credit (personal use) for the

for which the credit is claimed, up to 100 per-

educational expenses of each child who is an

cent of the taxpayer's tax liability.11

eligible student.

C) Public Education Tax Credits are nonre-

Section 4: Application of Tax Credits to

fundable.8

Income, Sales, and Property Taxes12

D) Scholarship organizations may solicit

A) Tax credits may be claimed against a tax-

contributions from individuals and corpora-

payer's full income tax liability in accordance

tions and provide educational scholarships

with Sections 3 and 5.

to eligible students.

B) Tax credits may be claimed against a person's

E) A corporate taxpayer, an individual tax-

full sales tax liability in accordance with Sections

payer, or a married couple filing jointly may

3 and 5. The state sales tax liabilities against

carry forward unused Public Education Tax

which individuals may claim credits will be

Credits (for donation and personal use) for

determined according to tables produced by the

three years.9

Internal Revenue Service in accordance with the

Tax Relief and Health Care Act of 2006,

F) For corporations, the amount of the

Publication 600, State and Local General Sales Taxes

for the most recent year available.13

Public Education Tax Credit (donation) shall

equal any contributions to scholarship orga-

nizations during the taxable year for which

C) Tax credits may be claimed against a tax-

payer's full property tax liability,14 in accor-

the credit is claimed, up to 100 percent of the

taxpayer's tax liability.10

dance with Sections 3 and 5, to the extent that

it derives from property taxes imposed for

school operating purposes but not from prop-

G) For parents, the total amount of the Public

erty taxes levied for bonded indebtedness or

Education Tax Credit (personal use) claimed

payments pursuant to lease-purchase agree-

for their eligible children shall equal no more

ments for capital construction.15 The eligible

than their total direct payments for education-

al expenses for all of their dependent eligible

student for whom the person is claiming the

children, up to the child credit cap for each

credit must be a resident of the school district

child or their total applicable tax liability,

in which the person is claiming the credit.

whichever is less, during the taxable year for

which the credit is claimed.

1) The department shall develop forms for

administering and claiming the credit for

H) For parents, the total amount of the funds

property tax purposes. The person or per-

used for their eligible children which is derived

son's agent must use these forms to claim

from scholarship organizations cannot exceed

the credit. Tax collecting entities shall make

the total amount of their child credit caps

the forms available at offices and locations

minus their total tax liability against which a

where tax information is distributed.

Public Education Tax Credit can apply (total

2) The person shall claim the credit for

37