The Empowerment Scholarship Accounts will take donations from taxpayers in exchange for a tax credit which can be claimed up to four years after the donation is made. These contributions will be handled by the Education Assistance Organization, a tax-exempt charity designed to handle this new bill’s workload.
Taxpayers cannot determine who receives the scholarship, paying in does not ensure that a specific child in question receives the scholarship, but children who are eligible include: “Qualified students that have an approved ‘individualized education plan’ (IEP) developed under the federal Individuals with Disabilities Education Act (IDEA), 20 U.S.C. Section 1400 et seq., as amended or qualified students living in a household whose total annual income does not exceed an amount equal to one hundred percent of the income standard used to qualify for free and reduced price lunches; Qualified students living in a household whose total annual income does not exceed an amount equal to two hundred percent of the income standard used to qualify for free and reduced price lunches; and all other qualified students.”
With this new law entering the educational spectrum, Missouri will be closely watched by other states entering the school choice debate. The Empowerment Scholarship Accounts Program can be used for private school tuition, transportation to and from school, and other education expenses like tutoring and supplies. Ninety percent of the donations for this fund must go expressly to the scholarship with no more than 10 percent being allocated for marketing and administrative expenses.