Changes have been made recently to the Alabama Accountability Act. Some of the most imminent and noticeable changes affecting donors are discussed below.
- A donor is now allowed to select 2014 or 2015 when notifying the department of a donation to a scholarship granting organization (SGO), and reserving a portion of the remaining available tax credit for either year. This option to select a tax year will remain available until October 15, 2015 or until all of the remaining available 2014 credits have been reserved, and verified by the recipient SGOs. A taxpayer who has previously filed the 2014 tax return may make a donation and file an amended tax return to claim the 2014 tax credit. A taxpayer who has not yet filed a 2014 return should show the credit on the original return, which must be filed prior to the extended due date of October 15, 2015.
- Effective January 1, 2015 for the 2015 tax year:
- An increase from $25 million to $30 million in the aggregate allowable annual tax credits.
- An increase from $7,500 to $50,000 in the annual maximum tax credit available on an individual income tax return.
- The ability for owners/members of partnerships and S-Corporations to take pro-rata income tax credits for donations made to SGOs by the partnerships and S-Corporations.