The BOAST Maryland Tax Credit is modeled on Pennsylvania’s successful Educational Improvement Tax Credit (EITC), which has led more than 3,600 companies to pledge in excess of $360 million dollars since 2001.
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BOAST Maryland Tax Credit
Legislation to create the BOAST Maryland Tax Credit (HB 946 /SB 385) has been introduced in the 2010 Maryland General Assembly.
The BOAST Maryland Tax Credit provides Maryland’s elementary and secondary schools with a means of leveraging significantly increased investment from their local business communities. This initiative would allow businesses to claim a 75 percent state tax credit (rather than a charitable deduction) for donations to organizations that support Maryland’s K-12 public and nonpublic school students and teachers.
When businesses become partners in local education, the entire community wins. BOAST will benefit students and teachers at both public and private schools, as well as nonprofit educational organizations, businesses, and taxpayers.
- Businesses will receive a state income tax credit worth 75 percent of their donations to eligible scholarship organizations and enrichment programs, which will reduce their state tax burden.
- The BOAST tax credit will foster a thriving local educational system, which will attract new residents and talented employees to the community.
- Business donations to scholarship organizations will sustain enrollment in nonpublic schools, which save taxpayers about $1.5 billion each year in per pupil expenditures.
The passage of the BOAST legislation is particularly important at this time. Both public and private schools face increasing expenses and budget cuts. Without an increase in scholarship assistance, students whose families cannot afford rising tuition at nonpublic schools will be redirected into overcrowded public schools. In addition, Maryland is preparing for an influx of more than 25,000 families through the Base Realignment and Closure (BRAC) program, which will place additional strains on public schools. It is critical that we guarantee the availability of diverse and affordable educational options through innovative programs like the BOAST Maryland Tax Credit.
Once the legislation to create the BOAST Maryland Tax Credit has been passed, the program will be administered by the Maryland State Department of Education (MSDE). Here are the requirements for businesses and nonprofits.