HB 408 created the Innovative Education Program Tax Credit which “is available to taxpayers who donate to Montana public school districts (PSD) for the purpose of providing supplemental funding to the school districts for innovative educational programs (IEC).”
Montana’s 2023 tax rates ran from 1% to 6 ¾ % (kicking in at $21,6010), so it isn’t particularly hard to find people who could make a thousand or two contribution to the school, then get it back come tax time. The new law creates a way to increase school funding with individual donations instead of trying to pass another levy. Like the headline says – we need better school board member, teachers and administrators to take advantage of this opportunity. The challenge here is that the law limits these donations to 5 million per year – which kind of says the schools that already have boards, teachers and administrators who think outside the box are going to get this new source of funding.
Schools that lack folks with that sort of thinking are going to get what the littlest pig got.
School districts have to register for an account on the Education Donation Portal to accept donations eligible for the tax credits.
Innovative Educational Programs are defined as “an advanced academic program that enhances the curriculum or academic program of an eligible public school. They can include:
- Transformational learning (20-7-1602 MCA)
- Advanced Opportunity (20-7-1503 MCA)
- Any program, service, instructional methodology, or adaptive equipment used to expand opportunity for a child with a disability (20-7-401 MCA)
- Any courses provided through work-based learning partnerships for post secondary credit or career certification
- Technology enhancements
- Capital improvements and equipment necessary to support innovative educational programs
More data is available from the folks at Montana Department of Revenue: 406-444-6900.
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