The proposed bill aims to establish an empowerment scholarship tax credit in Massachusetts to enhance educational opportunities for qualifying students. It introduces a refundable tax credit for taxpayers who make qualified donations to means-tested scholarship programs at accredited tuition-based schools in the state. Specifically, the credit is set at 30% of the donation amount, with a cap of $250,000 per taxpayer. The bill outlines definitions for key terms such as "qualified donation," "qualified scholarship program," and "qualifying students," ensuring that the benefits are directed towards students who cannot afford tuition and related expenses.

Additionally, the bill mandates that the total cumulative value of the tax credits authorized under this program and related provisions shall not exceed $20 million annually. It also requires the state auditor to conduct an economic analysis of the tax credit's performance within two years of its implementation and annually thereafter, assessing its impact on state revenue, expenditures, economic activity, and public benefit. Schools participating in the scholarship program must report their contributions and scholarships awarded to the Department of Revenue, ensuring transparency and accountability in the program's administration. The provisions of the bill are set to take effect for tax years beginning January 1, 2026.

Statutes affected:
Bill Text: 62-6