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Committee approves bill expanding education donation tax credit to include cash gifts
Summary
The panel passed SB226 to expand the income tax credit for donations to certain educational institutions to allow cash gifts; the sponsor said the cash donation credit equals 33% of the donated amount, and AEDC supports the proposal.
The Senate Revenue & Tax committee approved SB226, which would expand an income tax credit for donations of machinery and equipment to also include cash donations to qualifying educational institutions.
Senator Pitch, who presented the bill, said the change responds to requests AEDC has received and would allow taxpayers who make cash donations to receive a tax credit tied to those gifts. During questioning, another senator asked whether a cash donation would be treated as a dollar-for-dollar credit "against their Arkansas return." The presenter clarified the bill’s text: "In the case of a cash donation, 33% of the amount cash donated to the qualified educational institution is the tax credit." The presenter characterized the bill as straightforward and one of several AEDC-backed measures this session.
A motion to pass the bill was made, and the transcript records a mover and second in committee (Senator Garner moved; Senator Ingram seconded) before the committee approved SB226 by voice vote. The chair closed consideration and thanked the sponsor.
The transcript uses the acronym AEDC in describing stakeholder interest; the full name for that acronym is not specified in the meeting record. The committee recorded no fiscal estimate in this discussion.
