Bill > SB159

This bill establishes an educational opportunity fund within the coal severance tax trust fund to support and expand educational tax credit programs. The legislation removes the sunset (expiration) provisions for two existing educational tax credit programs: one for donations to public school districts for innovative educational programs and another for donations to student scholarship organizations. These tax credit programs will now have their aggregate annual limits increased from $2 million in 2023 to $5 million in 2024, with a mechanism for potential future increases. Specifically, if 80% of the annual aggregate limit is reached, the limit can be expanded by 20% plus an additional amount based on earnings transferred from the new educational opportunity fund to the general fund. The bill also mandates a transfer of $100 million from the general fund to the educational opportunity fund by August 15, 2025, and requires that 50% of the fund's earnings be transferred to the general fund annually. These changes aim to provide more sustainable funding for educational initiatives and tax credits, supporting both public schools and student scholarship opportunities in Montana.