SB301 Alabama 2012 Session

This bill would provide an income tax credit for certain qualifying educational expenses incurred by the parents or guardians of students enrolled in qualified nonpublic private schools or church schools in the state

Relating to state income tax; to provide an income tax credit for certain qualifying educational expenses incurred by parents or guardians of students enrolled in qualified nonpublic private schools or church schools for tax years beginning January 1, 2012; to limit the tax credits to those households with total annual adjusted gross income of $60,800 or less; to specify the obligations of the Commissioner of Revenue and the Department of Revenue in implementing this act. BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1. For the purposes of this act, the following words shall have the following meanings: (1) ACADEMIC INSTRUCTION. Instruction in reading, writing, mathematics, science, English and literature, philosophy, foreign languages, social studies, including art and music history, geography, economics, government and citizenship, and other subjects traditionally taught to elementary and secondary age students. (2) ELIGIBLE STUDENT. A student who is five years of age on or before September 1 and who may not turn 19 years of age on or after September 1, except for special education students who shall be three years of age on or before September 1 and may not turn 21 years of age on or before September 1. Additionally, the student shall be in grade 9, 10, 11, or 12 and shall be making progress toward graduation with his or her class, with the exception of special education students. Commencing in 2013, students in grade 8 shall be eligible for the credit and, each year following, students in another grade level, in descending order, shall be added until all qualifying students in grades 1-12, inclusive, are eligible for the credit. (3) GUARDIAN. The parent or person legally responsible for ensuring compliance by each child in his or her care with state mandatory education laws. (4) LOW INCOME. Where the total adjusted gross income of all taxpayers in a household does not exceed 175 percent of the federal poverty level. On the effective date of this act, low income for a family of four is thirty-nine thousand one hundred thirty-five dollars ($39,135). (5) QUALIFIED SCHOOL. A private school or church school as defined in Section 16-28-1, Code of Alabama 1975, that satisfies the compulsory attendance requirements provided in Sections 16-28-3 and 16-28-7, Code of Alabama 1975. A qualified school shall be accredited by one of the six regional agencies, the American Association of Christian Schools, the Alabama Independent School Association, or a member of the National Council for Private School Accreditation or, if not so accredited, shall satisfy all of the following conditions: a. Be in existence for at least three years. b. Have average daily attendance of at least 85 percent over a two-year time period. c. Have a minimum 178-day school year. d. Have a school day length of at least six and one-half hours. e. Require all students in grades K to 11 to take the Stanford Achievement Test or its equivalent. f. Require all candidates for graduation to take the American College Test (ACT) before graduation. g. Have at least one teacher employed for every 20 students enrolled. h. Require students in high school grades 9 to 12 to earn a minimum of 24 Carnegie credits before graduating, including 16 credits in core subjects and additional requirements in health and physical education, fine arts, computer studies, and foreign language. i. Not subject special education students to the same testing or curricular requirements as regular education students. j. Maintain a current website that describes the school and the instructional program of the school. (6) QUALIFYING EDUCATIONAL EXPENSES. Tuition paid to a nonpublic school that is necessary for required academic instruction. Section 2. (a) For Alabama tax years commencing January 1, 2012, a taxpayer shall be allowed a nonrefundable credit against any tax levied pursuant to Section 40-18-2, Code of Alabama 1975, for up to 75 percent of the qualifying educational expenses incurred during the tax year on behalf of each eligible student for which he or she is the guardian and who is enrolled in a qualified school. A taxpayer who is a member of a low income household may claim the credit for up to 100 percent of the qualifying educational expenses incurred. (b) If the amount of the allowable tax credit exceeds the tax imposed on the taxpayer for the taxable year, the excess may be carried over for credit imposed on the taxpayer in the two succeeding taxable years until the total amount of the tax credit has been taken. (c) Amounts claimed under this section may not also