The bill proposes a tax credit for expenses related to nonpublic school education, establishing eligibility requirements and definitions for various terms associated with the credit. It defines "nonpublic education setting" as any legal education environment that meets compulsory attendance laws, excluding traditional public schools and charter schools. The credit allows taxpayers to claim expenses for tuition, textbooks, extracurricular activities, and additional educational costs for qualifying students, which are defined as dependents receiving full-time academic instruction in a nonpublic setting. The credit amount is capped at the lesser of the actual expenses incurred or 44.7% of a specified per-student funding rate.

Additionally, the bill amends existing law to include the new tax credit in the list of credits subject to review by the revenue interim committee. It grants rulemaking authority to the Department of Public Instruction to establish eligibility for certain educational programs and expenses. The provisions of the bill will take effect for income tax years beginning after December 31, 2025.

Statutes affected:
LC Text: 15-30-2303
HB0209_1: 15-30-2303
HB0209_1(1): 15-30-2303