USC Section 1751 et seq.).20
property tax purposes at the time pay-
ment is made and shall furnish the col-
4) 25 percent of the funding benchmark
lecting entity a completed form, a copy of
for each dependent eligible student in a
the receipt, and payment for the amount
family with a current-year taxable income
due, if any, after application of the credit.
not exceeding 6.0 times the family size and
income standard used to qualify for a
Section 5: Determining the Child Credit
reduced-price lunch under the national
Cap16
Free or Reduced-Price Lunch Program (42
USC Section 1751 et seq.).
5) 0 percent of the funding benchmark for
A) An eligible student's family can use a com-
each dependent eligible student in a fami-
bination of Public Education Tax Credits up
ly with a current-year taxable income that
to the total amount of the child credit cap for
each dependent eligible student.17
is more than 6.0 times the family size and
income standard used to qualify for a
reduced-price lunch under the national
B) Notwithstanding the above, an eligible
Free or Reduced-Price Lunch Program (42
student's family can use educational scholar-
USC Section 1751 et seq.). These families
ships derived from Public Education Tax
are still able to claim credit for donations
Credit donations that amount to no more
to scholarship organizations or direct pay-
than the total of all child credit caps for all
ment of educational expenses for nonde-
dependent eligible students minus the fami-
pendent eligible children.21
ly's total tax liability for which a tax credit is
available during the taxable year in which the
scholarship is claimed.18
D) Notwithstanding the above, each family
that makes use of a combination of both
C) The child credit cap is:19
donation and personal use credits must
ensure that the total used does not exceed the
total in child credit caps for which they are
1) 80 percent of the funding benchmark
eligible according to the guidelines in section
for each dependent eligible student in a
5C above. If a family overestimates the schol-
family with a current-year taxable income
arship funds for which they are eligible, the
not exceeding the family size and income
taxpayer must adjust downward the personal
standards used to qualify for a reduced-
tax credit claimed on their income tax return
price lunch under the national Free or
for the current year.
Reduced-Price Lunch Program (42 USC
Section 1751 et seq.).
Section 6: Responsibilities of Parents
2) 70 percent of the funding benchmark
Claiming or Using Public Education Tax
for each dependent eligible student in a
Credits22
family with a current-year taxable income
not exceeding 1.5 times the family size and
income standard used to qualify for a
A) Parents may claim the Public Education Tax
reduced-price lunch under the national
Credit only for expenses they actually paid.
Free or Reduced-Price Lunch Program (42
USC Section 1751 et seq.).
B) On a form prescribed by the department,
3) 50 percent of the funding benchmark
parents will provide a detailed listing of the
for each dependent eligible student in a
educational expenses for each child for
family with a current-year taxable income
whom they claim or have used a tax credit.
not exceeding 3.0 times the family size and
They will attach to the form all receipts nec-
income standard used to qualify for a
essary to document these expenses.
reduced-price lunch under the national
Free or Reduced-Price Lunch Program (42
C) On a form prescribed by the department,
38