BOAST Process: How it Works

Businesses may receive a tax credit against the state income tax of 75% of their total donation to an eligible organization.

Businesses eligible for the credit include C corporations, S corporations, sole proprietorships, partnerships, limited liability corporations, and business trusts.

Must be a 501(c)(3) organization that expends at least 85% of its annual receipts on scholarships.

Must provide scholarships to students attending at least four different schools.

Must provide scholarships on a priority basis to all student applicants who qualify for the federal Free and Reduced Price Meals program.

Must expend any remaining funds to provide scholarships on a sliding scale according to the financial need of other student applicants.

May provide up to 25% of their proceeds for scholarship grants to nonpublic school teachers for the cost of graduate-level coursework or continuing professional development programs needed to meet or retain certification

Must be a 501(c)(3) organization that expends at least 85% of its annual receipts on programs or services to public school students or teachers.

Must support enrichment programs for public school students that reinforce the goals of the Bridge to Excellence Act

May provide up to 25% of proceeds for professional development programs for public school teachers needed to meet or retain state certification or certification from the National Board for Professional Teaching Standards

Businesses submit an application for a state tax credit to the Maryland State Department of Education (MSDE), indicating the amount of their intended contribution.

MSDE approves tax credit applications on a first-come, first-served basis, according to the statewide limitations.

Educational Scholarship Organizations and Innovative Educational Organizations confirm receipt of each business contribution with MSDE.

MSDE provides businesses certification of their contributions for the purposes of filing for the credit on the business’ state income tax return.

Educational Scholarship Organizations and Innovative Educational Organizations submit an application to MSDE verifying that they meet the statutory requirements of an approved organization.

MSDE must approve organizations’ applications within 60 days

MSDE publishes a list of all approved organizations