Section 1. Definitions

(A) “Qualifying student” carries the definition of a “qualifying child” found in 26 U.S.C. § 152(c)(1) through (4) who received full-time academic instruction in a nonpublic school.

(B) “Curriculum” means a completed course of study for a particular content area or grade level, including any supplemental materials required by the curriculum;

(C) “Nonpublic school” means any legal education setting in this state that meets the compulsory attendance requirements in [insert statutory reference], excluding the traditional public school system and charter schools.

(D) “Full-Time Academic Instruction” means attendance in a non-public education setting for at least one semester or its equivalent (i.e., two quarters, one-and-one-half trimesters) during the taxable year for which a taxpayer is claiming the credit created in this Act.

(E) “Taxpayer” means an individual who is filing an income tax return pursuant to [insert statutory reference] or a married couple who is filing their tax return jointly pursuant to [insert statutory reference].

(F) “Noncustodial parent” means, in cases of divorce or separation, a parent with whom a child resides for less than fifty percent (50%) of the taxable year.

Note: If the state considers nonpublic education options as an exemption from the compulsory education laws, then the definition of “nonpublic school” should be changed to the following:

“Nonpublic school” means any legal education setting in this state that is legally exempt from the compulsory attendance requirements in [insert statutory reference], excluding traditional public schools and charter schools.

Section 2. Education Tax Credit

(A) A taxpayer is allowed a credit against the income tax imposed by [insert statutory reference] for each qualifying student. Such credit shall be equal to one-hundred percent (100%) of the average base educational aid provided by the State as described in [insert statutory reference] for the fiscal year that ended during the applicable taxable year.

(B) No more than one taxpayer may claim the credit created by this section for a given qualifying student in a taxable year. In cases of divorce or separation, where each parent resides in a different location, a noncustodial parent may claim the credit created by this section if:

(1) A court of competent jurisdiction has unconditionally awarded the noncustodial parent the tax benefits associated with the qualifying student pursuant to [insert statutory reference] and the noncustodial parent attaches a copy of such court order to their income tax return for the applicable taxable year; or

(2) The custodial parent signs a written declaration that they will not claim the tax credit created in this section for such qualifying student in the applicable taxable year.

(C) Credits claimed by the taxpayer pursuant to this section shall not be used to offset or pay the following:

(1) Delinquent tax liability;

(2) Accrued penalty or interest from the failure to file a report or return;

(3) Accrued penalty or interest from the failure to pay a state tax within the statutory period allowed for its payment; or

(4) Tax liability of the taxpayer from any prior tax year.

(D) The [insert state tax authority] shall promulgate rules and regulations that are necessary to carry out the provisions of this section. However, such rules and regulations shall not require evidence of a taxpayer’s compliance with the compulsory attendance requirements in [insert statutory reference] beyond the applicable evidentiary requirements otherwise found in state law.