SCHOLARSHIP TAX CREDIT
TRIPLE WIN FOR TAXPAYERS, STUDENTS WITH DISABILITIES, AND THE UTAH BUDGET
BY KIM COLEMAN
I
t’s hard to say which is more exciting, that taxpayers now get to choose to direct their state income tax obligation, or that students with disabilities will benefit from that choice. A new scholarship program created by the legislature (HB 4003, 2020) for students in K-12 with disabilities has recently launched, with a 100% nonrefundable state income tax credit for donors to the scholarship fund. Utah joins 20 states with similar programs, but Utah’s 1-to-1 tax credit is especially appealing as it does not compete with other charitable giving. Donations may come from individuals or businesses, and there is no limit on the amount that can be donated. However, there is approximately $6 million in
available tax credits that may be distributed, and it’s not uncommon for states to reach credit limits early each year. The Children First Education Fund (visit the website at childrenfirsteducationfund.org) is the state-designated nonprofit “scholarship granting organization” that manages the fund, including fundraising, issuing the tax credit certificates and awarding and disbursing the scholarships. This new scholarship program comes at a time when support for education choice has never been higher. A large number of the scholarships will pay for tuition for students to attend one of 35 private schools across the state, while
EdChoice.org
20
THE JOURNAL ENTRY |
J U LY 2 0 2 1
