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Schools claim tax credits for donors

HILARY MATHESON | Hagadone News Network | UPDATED 1 year, 9 months AGO
by HILARY MATHESON
Daily Inter Lake | January 30, 2023 11:00 PM

Local school districts including Kalispell, Columbia Falls, Somers-Lakeside and Evergreen have claimed a portion of tax credits for donors through the Montana Department of Revenue’s Innovative Educational Program.

The program is intended to provide Montana’s public schools with supplemental funding for innovative education.

The program offers dollar-for-dollar tax credits to individuals, estates or trusts, corporations, partnerships and LLC’s donating up to $200,000 to Montana’s public schools. School districts are tasked with entering donation information through an online portal and credits are claimed on a first-come-first-serve basis. Up to $2 million in tax credits were available to claim this year.

Preapproved tax credits may be invalidated if the donation amount is recorded incorrectly or a donation is returned to a donor, according to the Montana Department of Revenue.

There is a separate $2 million tax credit program for Student Scholarships Organizations, which benefits private schools.

In Kalispell Public Schools, $66,500 was claimed through seven donations to its elementary district (grades K-8). It secured four donations totaling $40,200 for its high school district. Columbia Falls High School claimed $40,000 with four donations, of which, $30,000 was invalidated due to a clerical error. The school will be able to enter the correct information on Oct. 4. Three donations totaling $35,100 was secured by Somers-Lakeside School District. Evergreen School District claimed $10,000 from one donation.

On Tuesday, Kalispell Superintendent Micah Hill informed school board trustees about the donations and thanked business department employees for swiftly entering donation information. While grateful for the donations, he said the program continues to raise questions around the state regarding equitable funding for public schools and communities of different sizes and socioeconomic status, echoing concerns raised in 2022, the program’s first year. He pointed to Big Sky School District as an example. Big Sky claimed $895,500 — the highest amount — with seven donations, according to the Montana Department of Revenue. Kalispell trustee Lloyd Bondy asked what Big Sky was doing differently than other schools.

“Big Sky has some, pretty, I’ll just say, financially solvent donors,” Hill said.

Reporter Hilary Matheson may be reached at 758-4431 or hmatheson@dailyinterlake.com.

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