OLR Bill Analysis
AN ACT ESTABLISHING A TAX CREDIT FOR SUPPORT OF EXTENDED LEARNING OPPORTUNITY PROGRAMS.
This bill establishes a tax credit for individuals and companies that donate money to extended learning opportunity programs, which are extracurricular learning programs sanctioned by local or regional school boards that provide academic, artistic, athletic, or social education to students beyond normal school hours.
The tax credit, which is equal to 100% of the donated amount, applies against the (1) insurance premium, (2) corporation, (3) utility company gross earnings, and (4) personal income tax, but not the withholding tax.
No taxpayer may claim more than $50,000 in tax credits (it is not clear whether this is an annual or lifetime limit). And the total amount of credits that may be claimed per fiscal year annually may not exceed $2 million.
EFFECTIVE DATE: July 1, 2013 and applicable to income years beginning on or after January 1, 2013
TAX CREDIT FOR DONATIONS TO EXTENDED LEARNING OPPORTUNITY PROGRAMS
The bill requires the taxpayer to claim the credit in the income year in which it is earned. Unused credits expire and are not refunded.
If the taxpayer is an S corporation or an entity treated as a partnership for federal income tax purposes, the credit can be claimed by the shareholders or the taxpayer's partners. If the taxpayer is a single member limited liability company (LLC) that is not regarded as an entity separate from its owner, the credit may be claimed by the LLC's owner.
The bill provides that credits claimed against the personal income tax may not exceed the amount of the tax owed (i.e., the credit is not refundable).