Bradley partner Bruce Ely was quoted in Tax Notes State on a new state tax credit ruling. The Louisiana Board of Tax Appeals just ruled that a Louisiana couple could claim an other-state tax credit on amounts they gave to an Alabama-based scholarship-granting organization (SGO) in exchange for an Alabama income tax credit.
Ely said the Board “got it right, both from a Louisiana and Alabama tax perspective.”
“By statute, the donation made to the Alabama scholarship-granting organization is deemed to be a dollar-for-dollar credit against the donor’s Alabama income tax liability, and therefore should be considered a creditable tax by the state of residence of the donor – here, Louisiana,” said Ely.
The complete article, "Board Allows Tax Credit for Alabama Scholarship,” was published by Tax Notes State on March 28, 2022. (login required)