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School Choice Options for Maryland

Education Tax Credits and the BOAST Tax Credit Proposal

Edited by Alison Lake
Published on Monday, March 12, 2007
STUDIES

In the 2007 Maryland state legislative session, a bipartisan coalition of legislators has introduced the Building Opportunities for All Students and Teachers, or BOAST tax credit proposal. This initiative is modeled after a similar tax credit program in Pennsylvania that has strong bipartisan support there. The legislation (Senate Bill 265) is sponsored by State Senator James E. DeGrange, Sr., a Democrat from District 32 (Anne Arundel County) and 17 co-sponsors. In the House of Delegates, the bill is sponsored by Delegate James E. Proctor Jr., a Democrat from District 27A (Calvert and Prince George’s counties) and 57 co-sponsors.

The BOAST tax credit proposal would provide up to $25 million in partial tax credits to Maryland businesses that make contributions to support education. Specifically, the bill would allow businesses to make up to $15 million in contributions to non-profit organizations that fund tuition scholarships to non-public schools. Businesses would also be allowed to contribute up to $10 million to organizations that fund initiatives to improve public education. Businesses participating in the BOAST tax credit program would be able to receive a partial tax credit (worth 75 percent of the donation) for qualifying contributions.

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