Monday, October 12, 2015

Proposed Montana Rules Will Exclude Religious Schools From Tax Credit Program

Last month, the Montana Department of Revenue issued proposed rules (full text) to implement the state's recently-enacted School Contributions Tax Credit law (full text) (background).  Under the law, a state income tax credit of up to $150 is available for contributions to student scholarship organizations that provide scholarships for students at a "qualified educational provider."  One of the proposed new rules would precluded religious schools from participation in the program.  Proposed Rule I provides:
(1) A "qualified education provider" has the meaning given in 15-30-3102, MCA, and pursuant to 15-30-3101, MCA, may not be:
(a) a church, school, academy, seminary, college, university, literary or scientific institution, or any other sectarian institution owned or controlled in whole or in part by any church, religious sect, or denomination; or
(b) an individual who is employed by a church, school, academy, seminary, college, university, literary or scientific institution, or any other sectarian institution owned or controlled in whole or in part by any church, religious sect, or denomination when providing those services.
(2) For the purposes of (1), "controlled in whole or in part by a church, religious sect, or denomination" includes accreditation by a faith-based organization
A hearing on the proposed rules will be held on Nov. 5. Written comments on the proposed rules may be submitted until Nov. 17.  Montana Watchdog raises constitutional questions about the exclusion of religiously sponsored educational institutions.