The bill amends the Income Tax Act of 1967 by adding a new section, Sec. 281, which allows taxpayers to claim a credit against their income tax based on the target foundation allowance specified in the state school aid act for each qualified dependent. A qualified dependent is defined as a child aged 5 to 19 who is not enrolled in a public school and has demonstrated proficiency in reading and math. Taxpayers must provide reasonable proof of their dependent's qualifications, and if the credit exceeds the taxpayer's tax liability, the excess amount will be refunded.

This new provision aims to provide financial relief to families with children who meet specific educational criteria, encouraging educational achievement outside of public schooling. The bill outlines the definitions and requirements for claiming the credit, ensuring that it is targeted towards those who are actively engaged in alternative educational paths for their dependents.

Statutes affected:
House Introduced Bill: 206.1, 206.847