SB 2126 the Florida Tax Credit Voucher Bill that passed both Houses last week has finally been sent to the Governor for his signature, veto, or he can let it become law without his signature. He has until Friday, April 23 to make up his mind.

This is a massive expansion of the Corporate Tax Voucher program. The program provided a credit against corporate income and insurance premium taxes to taxpayers who make eligible contributions to nonprofit scholarship funding organizations (SFOs). SFOs award scholarships to students from families that meet specified income limitations, and the students use the scholarship to attend private school or pay for transportation to public schools located outside of the students’ districts of residence.

• The bill increases the current $118 million fiscal year cap on tax credits authorized under the FTC program to $140 million for fiscal year 2010-11. In fiscal year 2011-12 and thereafter, the cap will increase by 25% whenever tax credits approved in the prior fiscal year are equal to or greater than 90% of the tax credit cap amount for that year.

• The bill expands to include three new revenue sources for the FTC Program to include tax credits against: (1) severance taxes on oil and gas production; (2) self-accrued sales tax liabilities of direct pay permit holders; and (3) alcoholic beverage taxes on beer, wine, and spirits.

• Increases the scholarship amount in 2010-11, from the current limit of $3,950 with a variable amount as a percentage of the Florida Education Finance Program (FEFP) unweighted full-time equivalent (FTE) amount for that fiscal year. For fiscal year 2010-2011, the maximum scholarship amount will be 60% of the per FTE funding for that year. Beginning in FY 2011-12, the percentage used to determine the scholarship limit increases by 4% in the fiscal year when the tax credit cap also increases until it reaches a maximum of 80%. In that fiscal year and thereafter, the scholarship limit will be equal to 80% of the per FTE funding amount.

To read the final bill, go to: http://tinyurl.com/FLTAXCREDITVOUCHERBILL