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Senate rejects tax credit for donations to disability-service providers
Summary
Senate Bill 171, introduced by Sen. Montgomery, would have created income-tax credits for donations to nonprofit disability-service providers. Lawmakers debated impacts on the Uniform School Fund and unpredictability of the fiscal note; the measure failed on a roll call.
Senator Montgomery introduced Senate Bill 171 to allow income-tax credits for corporations or individuals who donate cash to 501(c)(3) organizations that provide services to people with disabilities. Montgomery said the aim was "to get some money in to help these organizations that are providing services to people with disabilities" and described caps on credits (for example, a $4,000 donation could generate a $2,000 credit).
Opponents, including Senator Jones and Senator Allen, raised concerns that the credit would reduce revenue to the Uniform School Fund and that the fiscal impact could grow unpredictably. Senator Jones called the provision "onerous" because it could chip away at school funding. Montgomery cited a fiscal note of about $41,000 in the upcoming fiscal year but acknowledged the credit could expand with increasing donations.
On the roll call, the Senate recorded 6 aye votes, 21 nay votes and 2 absent; the bill failed to pass.
Next steps: The bill failed on the floor and would need to be reintroduced or amended in a subsequent session to be reconsidered.
