AN ACT to amend the Indiana Code concerning education.
supplies (other than personal computers), and other written
materials used primarily for academic instruction or for
academic tutoring, or both.
(3) "Private elementary or high school education program" means:
(A) home schooling; or
(B) attendance at a private school;
in Indiana that satisfies a child's obligation under IC 20-33-2 for compulsory attendance at a school. The term does not include the delivery of instructional service in a home setting to a dependent child who is enrolled in a school corporation or a charter school.
(b) This section applies to taxable years beginning after December 31, 2010.
(c) A taxpayer who makes an unreimbursed education expenditure during the taxpayer's taxable year is entitled to a deduction against the taxpayer's adjusted gross income in the taxable year.
(d) The amount of the deduction is:
(1) one thousand dollars ($1,000); multiplied by
(2) the number of the taxpayer's dependent children for whom the taxpayer made education expenditures in the taxable year.
A husband and wife are entitled to only one (1) deduction under this section.
(e) To receive the deduction provided by this section, a taxpayer must claim the deduction on the taxpayer's annual state tax return or returns in the manner prescribed by the department.
(A) not later than the date of the contribution, the taxpayer designates in writing to the scholarship granting organization that the contribution is to be used only for a school scholarship program; or
(B) the scholarship granting organization provides the taxpayer with written confirmation that the contribution will be dedicated solely for use in a school scholarship program.
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2011]: Sec. 4.7. "Eligible school" refers to a public or nonpublic
elementary school or high school that:
(1) is located in Indiana;
(2) requires an eligible individual to pay tuition or transfer tuition to attend;
(3) voluntarily agrees to enroll an eligible individual;
(4) is accredited by either the state board or a national or regional accreditation agency that is recognized by the state board;
(5) administers the Indiana statewide testing for educational progress (ISTEP) program under IC 20-32-5;
(6) is not a charter school or the school corporation in which an eligible individual has legal settlement under IC 20-26-11; and
(7) submits to the department data required for a category designation under IC 20-31-8-3.
if the program:
(1) limits a recipient of a school scholarship to attending specific
participating schools; or
nature and importance of the following:
(A) Being honest and truthful.
(B) Respecting authority.
(C) Respecting the property of others.
(D) Always doing the student's personal best.
(E) Not stealing.
(F) Possessing the skills (including methods of conflict resolution) necessary to live peaceably in society and not resorting to violence to settle disputes.
(G) Taking personal responsibility for obligations to family and community.
(H) Taking personal responsibility for earning a livelihood.
(I) Treating others the way the student would want to be treated.
(J) Respecting the national flag, the Constitution of the United States, and the Constitution of the State of Indiana.
(K) Respecting the student's parents and home.
(L) Respecting the student's self.
(M) Respecting the rights of others to have their own views and religious beliefs.
(9) Provide instruction in the following studies:
(A) Language arts, including:
(iv) speech; and
(v) second languages.
(C) Social studies and citizenship, including the:
(ii) governmental systems; and
of Indiana and the United States, including a study of the Holocaust and the role religious extremism played in the events of September 11, 2001, in each high school United States history course.
(E) Fine arts, including music and art.
(F) Health education, physical fitness, safety, and the effects of alcohol, tobacco, drugs, and other substances on the human body.
(g) An eligible school, charter school, or public school shall not
teach the violent overthrow of the government of the United States.
(h) Nothing in this section shall be construed to limit the requirements of IC 20-30-5.
Sec. 2. (a) Subject to subsection (b), an eligible individual is entitled to a choice scholarship under this chapter for each school year beginning after June 30, 2011, that the eligible student enrolls in an eligible school.
(b) The department may not award more than:
(1) seven thousand five hundred (7,500) choice scholarships for the school year beginning July 1, 2011, and ending June 30, 2012; and
(2) fifteen thousand (15,000) choice scholarships for the school year beginning July 1, 2012, and ending June 30, 2013.
The department shall establish the standards used to allocate choice scholarships among eligible students.
Sec. 3. (a) An eligible school may not discriminate on the basis of race, color, or national origin.
(b) An eligible school shall abide by the school's written admission policy fairly and without discrimination with regard to students who:
(1) apply for; or
(2) are awarded;
scholarships under this chapter.
(c) If the number of applicants for enrollment in an eligible school under a choice scholarship exceeds the number of choice scholarships available to the eligible school, the eligible school must draw at random in a public meeting the applications of applicants who are entitled to a choice scholarship from among the applicants who meet the requirements for admission to the eligible school.
(d) The department shall, at a minimum, annually visit each eligible school and charter school to verify that the eligible school or charter school complies with the provisions of IC 20-51-4, the Constitutions of the state of Indiana and the United States.
(e) Each eligible school, public school, and charter school shall grant the department full access to its premises, including access to any points of ingress to and egress from the school's grounds, buildings, and property for observing classroom instruction and reviewing any instructional materials and curriculum.
Sec. 4. The maximum amount to which an eligible individual is entitled under this chapter for a school year is equal to the least of the following:
(1) The sum of the tuition, transfer tuition, and fees required
for enrollment or attendance of the eligible student at the
eligible school selected by the eligible individual for a school
year that the eligible individual (or the parent of the eligible
individual) would otherwise be obligated to pay to the eligible
(2) An amount equal to:
(A) ninety percent (90%) of the state tuition support amount determined under section 5 of this chapter if the eligible individual is a member of a household with an annual income of not more than the amount required for the individual to qualify for the federal free or reduced price lunch program; and
(B) fifty percent (50%) of the state tuition support amount determined under section 5 of this chapter if the eligible individual is a member of a household with an annual income of not more than one hundred fifty percent (150%) of the amount required for the individual to qualify for the federal free or reduced price lunch program.
(3) If the eligible individual is enrolled in grade 1 through 8, the maximum choice scholarship that the eligible individual may receive for a school year is four thousand five hundred dollars ($4,500).
Sec. 5. The state tuition support amount to be used in section 3(2) of this chapter for an eligible individual is the amount determined under the last STEP of the following formula:
STEP ONE: Determine the school corporation in which the eligible individual has legal settlement.
STEP TWO: Determine the amount of state tuition support that the school corporation identified under STEP ONE is eligible to receive under IC 20-43 for the calendar year in which the current school year begins, excluding amounts provided for special education grants under IC 20-43-7 and career and technical education grants under IC 20-43-8.
STEP THREE: Determine the result of:
(A) the STEP TWO amount; divided by
(B) the current ADM (as defined in IC 20-43-1-10) for the school corporation identified under STEP ONE for the calendar year used in STEP TWO.
Sec. 6. (a) If an eligible individual enrolls in an eligible school for less than an entire school year, the choice scholarship provided under this chapter for that school year shall be reduced on a prorated basis to reflect the shorter school term.
enrolled in a school subject to this section from applying for a
choice scholarship in the future at another participating school.
Sec. 10. The department may distribute any part of a choice scholarship to the eligible individual (or the parent of the eligible individual) for the purpose of paying the educational costs described in section 4(1) of this chapter. For the distribution to be valid, the distribution must be endorsed by both the eligible individual (or the parent of the eligible individual) and the eligible school providing educational services to the eligible individual.
Sec. 11. The amount of a choice scholarship provided to an eligible individual shall not be treated as income or a resource for the purposes of qualifying for any other federal or state grant or program administered by the state or a political subdivision.