At FM Global, we believe we have a responsibility to support the community around us. The Rhode Island Corporate Scholarship Tax Credit program is good for families in need, good for businesses and good for our state's long-term economic well-being.
Shivan. S. Subramaniam
Chairman and CEO
FM Global
The Rhode Island Corporate Scholarship Tax Credit
is a new program that allows businesses to receive a generous tax credit for
making contributions that provide economically disadvantaged children with
private school tuition scholarships.
Download
our brochure PDF
- Read testimonials from corporate donors to the program.
WHAT CHILDREN ARE ELIGIBLE TO RECIEVE A SCHOLARSHIP? School-age children (K-12) in families with an annual household income of not more than 250% of the federal poverty level.
WHAT BUSINESSES ARE ELIGIBLE TO PARTICIPATE? C-Corporations, S-Corporations, Limited Liability Partnerships, and Limited Liability Corporations.
HOW DOES THE TAX CREDIT WORK? Businesses can receive up to a 90% tax credit amounting to $100,000 annually on contributions. In 2008, the program has a total tax credit cap of $1 million dollars. Once the program has reached $1 million in approved tax credits from eligible businesses, no further tax credit applications will be accepted until July 1, 2008 (for fiscal year 2009). If the cap has not been used for the calendar year, then a business can apply at the beginning of the business’s fiscal year. Businesses can choose to make a two-year contribution commitment which will maximize the amount of tax credit they can receive.
HOW CAN ELIGIBLE BUSINESSES PARTICIPATE? Businesses must apply for qualified tax credits—up to $100,000 annually through the State of Rhode Island, Division of Taxation. The program is limited to $1 million in approved tax credits annually. Therefore, businesses are encouraged to apply early in the year. Once the annual cap is reached no more tax credits will be approved until the following year.
HOW DOES A CONTRIBUTION BECOME A SCHOLARSHIP? Scholarship tax credit contributions are distributed to certified Scholarship Granting Organizations (SGOs). SGOs are charitable organizations—representing two or more private schools—that administer tuition assistance grants to eligible students to allow them to attend any qualified participating school of their parents’ choice. A corporation may allocate its contribution to one or more specific SGOs.
HOW DOES MY BUSINESS APPLY FOR A RHODE ISLAND CORPORATE SCHOLARSHIP TAX CREDIT? Qualified businesses can apply to receive a scholarship tax credit by filling out and submitting this application form from the Rhode Island Division of Taxation.
*** Note to S-Corp, LLPs, and LLCs: The General Assembly has recently expanded eligibility for the scholarship tax credit, but the above Rhode Island Division of Taxation application form does not yet reflect this. If you are an S-Corp, LLP or LLC you can still use this form, but must add a sixth box beneath the fifth space and write in whether you are an S-Corp, LLC or LLP. Also provide a schedule, who will be taking the credit(s), and a list of owners and percentage of ownership within the business.
WHO CAN I CONTACT FOR MORE INFORMATION? Please contact individual Scholarship Granting Organizations about scholarship contributions and student eligibility.
RHODE ISLAND SCHOLARSHIP ALLIANCE
info@rischolarshipalliance.org