OPPAGA Report Evaluates Insurance Premium Tax Credit As Funding Source for State Scholarship Program
Dec 16, 2008
A report issued today, December 16, 2008, by the Florida Office of Program Policy Analysis and Government Accountability (“OPPAGA”), assesses the option of using insurance premium tax credits as an additional funding source for the State’s Corporate Income Tax Credit Scholarship Program.
Currently, in order to reduce their tax liability by contributing to the scholarship program, insurance companies must have a net corporate income tax liability greater than 65 percent of their insurance premium tax liability.
Current Florida law provides that corporate income taxes may be credited against insurance premium taxes, not to exceed 65 percent of insurance premium tax liability. Companies that do not have such a corporate income tax liability may contribute to the Program, but do not receive a reduction in tax liability for doing so.
At least two Florida Legislators, State Representative Martin Kiar and Senator Al Lawson, issued media statements in response, both of which suggested that OPPAGA revisit its findings and expand the scope of its Report.
A copy of the OPPAGA Report and a letter to OPPAGA from State Representative Kiar are attached for your review.
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