Committee Approves Tax Credit Bill

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Committee Approves Tax Credit Bill

Special Report - June 6, 2011
On Friday, the House Finance Committee voted 21 to 7 to approve HB 344—Tax Credits for Children with Disabilities, a bill that would allow eligible parents of disabled children to receive a yearly educational tax credit of up to $3,000 per semester. The tax credit could be used for qualified educational expenses, including costs for tuition, tutoring, or therapy. Families seeking to receive the tax credit would be required to meet the following conditions:

Demonstration by an official determination “based on an evaluation by the appropriate public school system” that the child does have special needs and requires an Individualized Education Plan.
Provide proof that the child “was enrolled in and attended a public school for at least the two preceding academic semesters.” Should the bill be enacted, this requirement would be lessened to one academic semester after July 1, 2016.

In a memo detailing the fiscal impact of the measure, the legislature fiscal research staff estimated that HB 344, if enacted, would save the state roughly $41 million over the next five years. HB 344 previously gained approval from the House Education Committee. As the June 9^th crossover deadline looms for the 2011-2012, HB 344 should now head for a vote on the floor of the House this week.

Related resources:
Committee Passes Education Tax Credits - April 28, 2011
Special Needs Tax Credits Bill Filed - March 22, 2011
Committee to Consider Special Needs Tax Credit - June 15, 2009
Tax Credits for Special Needs Children - June 11, 2008