What changes did Act 377 of the 2017 Regular Session make to the tax treatment of donations to School Tuition Organizations (STOs)?
Act 377 made three main changes to the tax treatment of donations to STOs. The three main changes are:
- Changed the nature of the tax benefit from a rebate to a nonrefundable income tax credit with a 3 year carryforward period;
- Requires that the recipient of the credit must be a taxpayer who is required to file a Louisiana income tax return; and
- Stipulates that the credit is claimed and allowed, the taxpayer can receive no other Louisiana tax benefit for the same donation.