Sec. 2. Tax credit for contributions to eligible charter school organizations
706 words·~3 min read·
/bill/119/hr/2798/ih/section-2A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25E the following new section: In the case of an individual who is a citizen or resident of the United States (as defined in section 7701(a)(9)), there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 75 percent of the amount of qualified contributions made by the taxpayer during the taxable year. The credit allowed under subsection
(a)in any taxable year shall not exceed an amount equal to the greater of— 10 percent of the adjusted gross income of the taxpayer for the taxable year, or $5,000. For purposes of this section— The term charter school has the same meaning given such term in section 4310 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7221i ). The term eligible charter school organization means an organization which— is described in section 501(c)(3) and exempt from tax under section 501(a) and is not a private foundation, is a charter management organization (as defined in section 4310 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7221i )), or a charter school (as defined in section 4310 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7221i )), that— has received, or manages a charter school that has received, a grant for the replication or expansion of high-quality charter schools under section 4305(b) of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7221d(b) ), or has been selected by a State for eligibility under this section based on a determination by the State that the organization is in the highest 10 percent of charter management organizations (as so defined) or charter schools (as so defined) for student performance in the State, separate from any other funds or contributions received by such organization, maintains and accounts for any contributions made by any person for the purpose of the creation or expansion of charter schools operated or managed by such organization, obtains from an independent certified public accountant annual financial and compliance audits, and certifies to the Secretary (at such time, and in such form and manner, as the Secretary may prescribe) that the audit described in clause
(iii)has been completed. For purposes of subparagraph (A), the term independent certified public accountant means, with respect to an organization, a certified public accountant who is not a person described in section 465(b)(3)(A) with respect to such organization or any employee of such organization. The term qualified contribution means a charitable contribution (as defined by section 170(c)) to an eligible charter school organization in the form of cash or marketable securities for the purpose of the creation or expansion of charter schools managed or operated by such organization. Any qualified contribution for which a credit is allowed under this section shall not be taken into account as a charitable contribution for purposes of section 170. If the credit allowable under subsection
(a)for any taxable year exceeds the limitation imposed by section 26(a) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section, section 23, and section 25D), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection
(a)for such taxable year. No credit may be carried forward under this subsection to any taxable year following the fifth taxable year after the taxable year in which the credit arose. For purposes of the preceding sentence, credits shall be treated as used on a first-in first-out basis. A qualified contribution shall be taken into account under this section only if such contribution would not result in aggregate tax credits under this section that are in excess of the volume cap established under section 4 of the High-Quality Charter Schools Act . . The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25E the following new item: Sec. 25F. Contributions to eligible charter school organizations. .
Connectionstraces to 2
Traces to 2 documents
Citation graph
cites case law
Sec. 2
Tax credit for contributions to eligible charter school organizations
Cites 2Cited by 0 across 0 sources