HCS/SCS/SB 71 - The act creates an income tax credit equal to fifty percent of the amount of an eligible donation made, on or after January 1, 2010, to a qualifying mentally retarded and developmental type disability care provider. The tax credit may not be applied against withholding taxes. The tax credit is non-refundable, but may be carried forward four years. The tax credit is transferable. A provider may apply to the Department of Revenue for the tax credits. The provisions of this act creating the tax credit for donations made to qualifying mentally retarded and developmental type disability care providers will automatically sunset six years after the effective date of the act unless reauthorized.
The act also decreases each individual income tax rate for the 2009 and 2010 tax years by one half of one percent such that the highest effective rate is reduced from six percent to five and one-half percent for such tax years.