Bill Could Encourage Donations To Schools Comittee Passes Measure To Double Tax Credits For Gifts

It would cost the state $2 million a year, but the penny-pinching House Revenue & Taxation Committee loosened up Monday and passed a bill to double Idaho’s tax credit for donations to schools.

The bill’s sponsor, Rep. Jim Clark, R-Hayden, said, “We’re talking about market-based solutions to public education, instead of always going after general fund money.”

North Idaho College Foundation President Brad Dugdale made a strong pitch to the committee for the bill, saying it will encourage donations to groups like his.

“With so many demands placed on the government today, it is clear that many public institutions like North Idaho College must look increasingly to their foundations for the financial assistance they need,” Dugdale wrote in a letter to the committee. “House Bill 620 will help charities throughout the state of Idaho.”

The committee also received letters in support of the bill from the EXCEL Foundation, Lake City High School and Canfield Middle School - all North Idaho beneficiaries of private donations.

Lake City has used donations to buy computers for classrooms, Principal John Brumley wrote.

Canfield Principal Jim Lien called the bill “a great opportunity for our parents to give added financial support to schools.” Idaho now allows a tax credit of up to $50 for an individual, or $500 for a corporation, for donations to schools. People may claim the credit for 50 percent of their donation.

The bill would double the maximum tax credit to $100 for an individual, and $1,000 for a corportaion.

Clark said the amounts haven’t been adjusted since 1976, and they’ve been eroded by inflation.

Because the donations also qualify taxpayers for federal credits, and state and federal deductions, the tax credit is considered a “double dipping” credit that provides significant tax advantages.

After the tax benefits, a taxpayer could find that a $100 donation to a school ends up costing him or her as little as $6.

In addition to donations to accredited public or private schools or colleges or their foundations, the credit applies to donations to libraries, Idaho Public Television, the Idaho Historical Society and museums.

The measure now heads to the full House for a vote. To become law, it also needs Senate passage and the governor’s signature.

, DataTimes