AMENDMENTS: Great Schools Tax Credit Act

Summary

Amends the Great Schools Tax Credit Program Act to close a loophole when interacting with the federal tax code.

AMENDMENTS: Great Schools Tax Credit Act

Amend the Great Schools Tax Credit Program Act as follows:

Section 3 (B): After “taxpayer’s tax liability.” add “Taxpayers may not claim the state tax credit if in the same tax year they also pay the federal alternative minimum tax and claim a federal charitable tax deduction for their scholarship donation to a scholarship granting organization.”

Amend endnote V as follows:

After the first paragraph, insert this new paragraph:

“Due to the interaction of state and federal taxes, some individuals who pay the federal alternative minimum tax (AMT) could receive state and federal tax benefits which exceed the amount of their charitable contribution to a scholarship organization. This language will require an individual who pays the federal AMT and wants to claim the state tax credit to not also claim the federal tax deduction for this particular charitable contribution.”