PROFESSIONAL NEWS

The Rhode Island Scholarship Alliance

The Rhode Island Scholarship Alliance, which helps oversee the Rhode Island Corporate Scholarship Tax Credit Program, has completed its second full school year of helping families in need across the state have a choice in school environment for their children, regardless of geographic or economic limitations.

S-Corporations, C-Corporations, LLCs, and LLPs can receive up to a 90% tax credit for a two-year contribution to close to sixty participating private and parochial schools across the state, who in turn must use the money to provide tuition assistance to families with an income of less than 250% of the federal poverty level (approximately $53,000 a year for a family of four). During the program's first two years, scholarships averaged between $3,000 and $5,000 per student. With a cap of $1 million available annually in tax credits, close to 300 scholarships have been awarded each year.

The Scholarship Tax Credit cap has been met through state Fiscal Year 2010, as businesses can maximize their credit with a two year contribution. The next open period will be July 1, 2010, for FY11 (and FY12). Anyone with questions should contact RISA Executive Director Kate Nagle at (401) 831-7472, or go to www.rischolarshipalliance.org. The application will be available in the spring of 2010 on the RISA and Rhode Island Division of Taxation's websites.