LITTLE ROCK — Arkansas lawmakers are considering a proposal to offer a 100 percent state tax credit for donations to a scholarship fund that would allow low-income students to attend private schools.
The Senate Revenue and Taxation Committee on Wednesday heard arguments from supporters and opponents of the tax credit proposal. Committee members are expected to vote on the measure in the afternoon.
The proposal by Republican Sen. Jane English of North Little Rock would grant taxpayers a credit for contributions to a nonprofit that would award private school scholarships to families making 250 percent or less of the federal poverty level.
The credit would be capped at a total of $10 million a year. State finance officials warned the panel that Gov. Mike Beebe's proposed balanced budget doesn't include room for that revenue loss.