Maryland Education Credit

The Maryland Education Credit, officially named the Partnership for Student Education and Community Investment Tax Credit (SB 844 / HB 1216) is designed to encourage business investment in local education and provide families with the resources they need to provide their children with a high-quality K-12 education.

Benefits for Students and Families

The Maryland Education Credit would generate funds for student assistance organizations--nonprofit organizations that provide scholarships and financial assistance to both public and private school students. Families could apply to receive financial assistance for expenses related to enrollment or attendance at an eligible nonpublic or public elementary or secondary school, including:

Tuition and fees (for private school enrollment)
Books, supplies, and equipment
Academic tutoring
Special needs services for a special needs student
Uniforms (if required by the school)
Transportation
Computer technology, equipment, or Internet access and related services used by the student and the student’s family for educational purposes and during any of the years the student is in elementary or secondary school.

Benefits for Businesses

If enacted, the Maryland Educatuon Credit would provide businesses with a tax credit against their state income tax liability, equivalent to 60% of their total donation to a student assistance organization.

Eligible businesses would include C corporations, S corporations, sole proprietorships, partnerships, limited liability corporations and business trusts. Business would not be able to claim a credit in excess of $200,000 annually.