Research » Education »

Maryland Think Tank Comments on Maryland Senate Vote for Scholarship Tax Credit

Published on Thursday, March 27, 2008
PRESS RELEASES

Rockville, MD - March 27, 2008- On March 26, Maryland's Senate gave preliminary approval to a bill that would encourage businesses to sponsor scholarships at private schools. Modeled after a similar program in Pennsylvania, the Maryland plan would provide tax credits to businesses that make scholarship contributions. The program would open up more opportunities for working families to send their children to schools of their choice.

Christopher B. Summers, president of the Maryland Public Policy Institute, commented: "This monumental piece of legislation will greatly benefit parents and provide the educational opportunities they seek for their children in Maryland." Summers added, "Given the popularity and success of the Pennsylvania program, it's encouraging to see that Maryland is seriously considering adopting this beneficial tax credit program."

An early version of the tax credit plan was analyzed by the Maryland Public Policy Institute in its March 2007 report "Education Tax Credits and the BOAST Tax Credit Proposal." The report can be viewed online at http://www.mdpolicy.org/research/pubID.143/pub_detail.asp

Under the legislation approved by the Senate:

• The State Department of Education would issue businesses an income tax credit for 75 percent of their contributions to nonprofit organizations that provide scholarships to students and teachers at private secondary schools.

• Organizations would become eligible through application to the Department.

The bill awaits approval from the Maryland House of Delegates, likely next week.

The Maryland Public Policy Institute is a 501 (C) (3) nonpartisan public policy research and education organization that focuses on Maryland public policy issues.

###