43-1184

43-1184. Credit for contributions to school
tuition organization; displaced students; students with
disabilities; definition

A. Beginning from and after June 30, 2009, a credit is allowed against the taxes
imposed by this title for the amount of voluntary cash contributions made by the taxpayer
during the taxable year to a school tuition organization that is certified pursuant to
chapter 15 of this title at the time of donation.

B. The amount of the credit is the total amount of the taxpayer's contributions for
the taxable year under subsection A of this section and is preapproved by the department
of revenue pursuant to subsection D of this section.

C. The department of revenue:

1. Shall not allow tax credits under this section and section 20-224.07 that exceed
in the aggregate a combined total of five million dollars in any fiscal year.

2. Shall preapprove tax credits under this section and section 20-224.07 subject to
subsection D of this section.

3. Shall allow the tax credits under this section and section 20-224.07 on a first
come, first served basis.

D. For the purposes of subsection C, paragraph 2 of this section, before making a
contribution to a school tuition organization, the taxpayer under this title or title 20
must notify the school tuition organization of the total amount of contributions that the
taxpayer intends to make to the school tuition organization. Before accepting the
contribution, the school tuition organization shall request preapproval from the
department of revenue for the taxpayer's intended contribution amount. The department of
revenue shall preapprove or deny the requested amount within twenty days after receiving
the request from the school tuition organization. If the department of revenue
preapproves the request, the school tuition organization shall immediately notify the
taxpayer that the requested amount was preapproved by the department of revenue. In order
to receive a tax credit under this subsection, the taxpayer shall make the contribution
to the school tuition organization within ten days after receiving notice from the school
tuition organization that the requested amount was preapproved. If the school tuition
organization does not receive the preapproved contribution from the taxpayer within the
required ten days, the school tuition organization shall immediately notify the
department of revenue and the department shall no longer include this preapproved
contribution amount when calculating the limit prescribed in subsection C, paragraph 1 of
this section.

E. If the allowable tax credit exceeds the taxes otherwise due under this title on
the claimant's income, or if there are no taxes due under this title, the taxpayer may
carry the amount of the claim not used to offset the taxes under this title forward for
not more than five consecutive taxable years' income tax liability.

F. Co-owners of a business, including corporate partners in a partnership, may each
claim only the pro rata share of the credit allowed under this section based on the
ownership interest. The total of the credits allowed all such owners may not exceed the
amount that would have been allowed a sole owner.

G. The credit allowed by this section is in lieu of any deduction pursuant to
section 170 of the internal revenue code and taken for state tax purposes.

H. A taxpayer shall not claim a credit under this section and also under section
43-1183 with respect to the same contribution.

I. The tax credit is not allowed if the taxpayer designates the taxpayer's
contribution to the school tuition organization for the direct benefit of any specific
student.

J. The department of revenue shall adopt rules necessary for the administration of
this section.

K. For the purposes of this section, "qualified school":

1. Means a nongovernmental primary school or secondary school or a preschool for
handicapped students that is located in this state, that does not discriminate on the
basis of race, color, handicap, familial status or national origin and that satisfies the
requirements prescribed by law for private schools in this state on January 1, 2009.

2. Does not include a charter school or programs operated by charter schools.