Tax Credit Bill filed

A tuition tax credit bill was filed which would help children in low performing school districts, such as Kansas City and St. Louis. This bill would provide tax credits for donations to organizations that give out scholarships to children in these schools. The bill can be seen here. It is introduced by Senators Ridgeway and Loudon. This type of bill can really serve to help these children. As I do love this bill, I wish that it would be a statewide initiative, not only focused on St. Louis and Kansas City. Other areas across Missouri could truly benefit from this.

The Show Me Institute released a study about the benefits of such a bill. The Fiscal Effects of a Tuition tax Credit Program in Missouri, written by Mike Podgursky, Sarah Brodsky, and Justin Hauke, does a great analysis of the ways Missouri can benefit from such a bill.

A tuition tax credit program has been proposed for Missouri to address educatio inequality among low-income families. The terms of this program would grant Missouri taxpayers a credit on their state income tax bills for contributions to scholarship-granting organizations (SGOs) — not-for-profit education groups that are recognized by the state. In turn, SGOs would use these contributions to provide private-school scholarships to grade-school students who meet eligibility criteria set by the Legislature.

Under the conditions we consider, a tuition tax credit program has the potential to save the state $7 million per year. Savings from a partial tax credit, in which taxpayers receive less than a dollar- for-dollar match on their contributions, may be as high as $17 million.

Missourians need to pay close attention to this bill and its progress. Although it may not be a new idea to Missouri, we need to make sure it passes this time. We can really use the benefits it serves to offer.