Bill > S1984

This bill establishes an empowerment scholarship tax credit to support educational opportunities for low-and-moderate-income students in Massachusetts. The legislation allows taxpayers to receive a 30% refundable tax credit for donations to qualified scholarship programs at accredited Massachusetts tuition-based schools (elementary, middle, and high schools). Qualifying students are those who would be accepted to these schools but cannot afford tuition, specifically those with household incomes below a specified threshold or those in foster care. The tax credit is capped at $250,000 per donation, and if the credit exceeds the taxpayer's tax liability, the excess will be paid out as an overpayment. The program is limited to a total of $20,000,000 in tax credits annually, and can be used by individual taxpayers, pass-through entities, and married couples filing jointly. The bill also requires the state auditor to conduct annual economic analysis reports on the program's performance, including impacts on state revenue, expenditures, economic activity, and public benefit. Additionally, recipient schools must report details about contributions and scholarships awarded. The tax credit will become effective for tax years beginning on or after January 1, 2026.