More types of companies will be able to get state tax credits for donations to organizations that help children attend private and parochial schools under the terms of legislation given preliminary House approval Thursday.
Existing law lets gives individuals and corporations a dollar-for-dollar credit on what they owe the state for money they give to scholarship organizations. SB 1048 extends that to also include shareholders of so-called S corporations, those small firms where the earnings are taxed not at the corporate level but are attributed to each company owner.
Rep. Bruce Wheeler, D-Tucson, said the legislation will further reduce state revenues and “deplete public education.” But Rep. Debbie Lesko, R-Peoria, said the state will save money if the funds means that some students move from public schools to private ones.
The measure now needs a final roll-call vote. The Senate already has approved a similar version.