Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-61 - ALABAMA ACCOUNTABILITY ACT - CREDITS FOR SCHOLARSHIP GRANTING ORGANIZATIONS › Section 810-3-61-.01 - Definition Of Terms And Phrases Used In Connection With The Scholarship Program

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
			 Scope: Act 2013-64, as amended by Acts 2013-265 and 2015-434, provides for
			 income tax credits to individuals and corporations making scholarship donations
			 to Scholarship Granting Organizations (SGOs.) This rule defines certain terms
			 and phrases used in connection with the program.
(2)
"Academic Year"
shall refer
			 to the12-month period beginning on July 1 and ending on the following June
			 30.
(3)
"Department"
shall mean the Alabama Department of Revenue.
(4)
"Educational Scholarship"
is
			 a grant made by a scholarship granting organization to an eligible student to
			 cover all or part of the tuition and mandatory fees for one academic year
			 subject to the scholarship limits of $6000 for elementary schools, $8000 for
			 middle schools, and $10,000 for high schools; but not in excess of the
			 nonpublic schools normal published prices or state appropriations for public
			 school students.
(5)
"Eligible Student"
is a member of a family consisting of at least
			 two or more related persons who reside together with an annual income equal to
			 or less than 185% the federal poverty level. The SGO must determine the
			 eligibility of each student every other academic year in which the student
			 receives an educational scholarship. If the annual income of the scholarship
			 recipient's family should exceed 185 percent of the federal poverty level, the
			 student will remain eligible until such a time as the annual income of the
			 student's family exceeds 275 percent of the federal poverty level or the age of
			 19 is reached.
(6)
"Family"
is a group of two or more people related by birth,
			 marriage, or adoption, including foster children, who reside
			 together.
(7)
"Income"
shall mean income before any deductions and includes monetary compensation for
			 services (including wages, salary, commissions or bonds or income from estates
			 or trusts, net rental income, public assistance or welfare payments,
			 unemployment compensation, government civilian employee or military retirement
			 or pensions or veterans payments, private pensions or annuities, alimony or
			 child support payments, regular contributions from persons not living in the
			 household, net royalties, and other cash income. The term "income" shall not
			 include any income or benefits received under any Federal or State programs
			 that are excluded from consideration as income by any statutory
			 prohibition.
(8) "
Scholarship
			 funds unaccounted for
" shall mean the amount of scholarship funds which
			 have not been paid out, promised or otherwise committed for a particular
			 student, as of a given date.
(9)
"SCHOLARSHIP GRANTING ORGANIZATION"
is an organization that
			 provides or is approved to provide educational scholarships to eligible
			 students attending qualifying schools of their parents' choice.
(10) "
Previous school year
"
			 means the normal academic year ending immediately prior to the academic year
			 for which the report is submitted.
Author:
Curtis Stewart, Neal Hearn
Statutory Authority
:
Code of Ala.
				  1975
, §§
										40-2A-7(a)(5),
				  16-16D-1.