May 2014 Legislation Offers OISF Improvements
The enabling legislation was amended in May 2014. Two important elements were added.
Three Year Donations: One was the 75% tax credit for Year One of a three-year commitment. But that benefit will not be effective until January 1, 2015. Until then there is no additional benefit beyond the 50% tax credits.
Pass Through Business Entities: The other was the treatment of subchapter S corporations and other “pass through business entities” as businesses entitled to the maximum $200,000 contribution. But that benefit will not be effective until January 1, 2015. Until then, these businesses are subject to the individual or family donation ceilings of $2,00 and $4,000 respectively.
For 2014-15, the Scholarship Act allows an eligible student to receive up to $6,194 annually. This is 80% of the statewide annual average expenditure per pupil reported by the State Department of Education. The actual scholarship amount will depend upon a number of factors including OISF/participating school success in raising funds each year. The school will propose a scholarship amount, but the final decision will rest with the OISF.
A low income student is defined as eligible for free and reduced lunch. According the federal guidelines that is 185% of the Federal Poverty Level. It is estimated that 62% of public school students in the state meet this standard. The law suggests that roughly 62% of the scholarship fund go to low income students attending private/independent schools. We will monitor this. It is very likely that this goal will be reached naturally without any intervention.