§ 44-62-2 - Qualification of scholarship organization.
SECTION 44-62-2
§ 44-62-2 Qualification of scholarshiporganization. – A scholarship organization must certify annually by December 31st to thedivision of taxation that the organization is eligible to participate in theprogram in accordance with criteria as defined below:
(a) "Scholarship organization" means a charitableorganization in this state that is exempt from federal taxation under §501(c)(3) of the internal revenue code, and that allocates at least ninetypercent (90%) of its annual revenue through a scholarship program for tuitionassistance grants to eligible students to allow them to attend any qualifiedschool of their parents' choice represented by the scholarship organization.
(b) "Scholarship program" means a program to provide tuitionassistance grants to eligible students to attend a nonpublic school located inthis state. A scholarship program must include an application and reviewprocess for the purpose of making these grants only to eligible students. Theaward of scholarships to eligible students shall be made without limitingavailability to only students of one school.
(c) "Eligible student" means a school-age student who isregistered in a qualified school and is a member of a household with an annualhousehold income of not more than two hundred fifty percent (250%) of thefederal poverty guidelines as published in the federal register by the UnitedStates department of health and human services.
(d) "Household" means one or more persons occupying adwelling unit and living as a single nonprofit housekeeping unit. Householddoes not mean bona fide lessees, tenants, or roomers and borders on contract.
(e) "Household income" means all income received by allpersons of a household in a calendar year while members of the household.
(f) "Income" means the sum of federal adjusted gross incomeas defined in the internal revenue code of the United States, 26 U.S.C. §1 et seq., and all nontaxable income including, but not limited to, the amountof capital gains excluded from adjusted gross income, alimony, support money,nontaxable strike benefits, cash public assistance and relief (not includingrelief granted under this chapter), the gross amount of any pension or annuity(including Railroad Retirement Act (see 45 U.S.C. § 231 et seq.) benefits,all payments received under the federal Social Security Act, 42 U.S.C. §301 et seq., state unemployment insurance laws, and veterans' disabilitypensions (see 38 U.S.C. § 301 et seq.), nontaxable interest received fromthe federal government or any of its instrumentalities, workers' compensation,and the gross amount of "loss of time" insurance. It does not include giftsfrom nongovernmental sources, or surplus foods or other relief in kind suppliedby a public or private agency.
(g) "Qualified school" means a nonpublic elementary orsecondary school that is located in this state and that satisfies therequirements prescribed by law for nonpublic schools in this state.
(h) "School-age student" means a child at the earliestadmission age to a qualified school's kindergarten program or, when nokindergarten program is provided, the school's earliest admission age forbeginners, until the end of the school year, the student attains twenty-one(21) years of age or graduation from high school whichever occurs first.
(i) Designation. A donation to a scholarshiporganization, for which the donor receives a tax credit under this provision,may not be designated to any specific school or student by the donor.
(j) Nontaxable income. A scholarship received by aneligible student shall not be considered to be taxable income.