R.I. Gen. Laws § 44-62-2 — Qualification of scholarship organization

A scholarship organization must certify annually by December 31st to the division
of taxation that the organization is eligible to participate in the program in accordance
with criteria as defined below:
(1) “Eligible student” means a school-age student who is registered in a qualified school
and is a member of a household with an annual household income of not more than two
hundred fifty percent (250%) of the federal poverty guidelines as published in the
federal register by the United States department of health and human services.
(2) “Household” means one or more persons occupying a dwelling unit and living as a single
nonprofit housekeeping unit. Household does not mean bona fide lessees, tenants, or
roomers and borders on contract.
(3) “Household income” means all income received by all persons of a household in a calendar
year while members of the household.
(4) “Income” means the sum of federal adjusted gross income as defined in the internal
revenue code of the United States, 26 U.S.C. § 1 et seq., and all nontaxable income including, but not limited to, the amount of capital
gains excluded from adjusted gross income, alimony, support money, nontaxable strike
benefits, cash public assistance and relief (not including relief granted under this
chapter), the gross amount of any pension or annuity (including Railroad Retirement
Act (see 45 U.S.C. § 231 et seq.) benefits, all payments received under the federal Social Security Act, 42 U.S.C. § 301 et seq., state unemployment insurance laws, and veterans’ disability pensions (see
38 U.S.C. § 301 et seq.), nontaxable interest received from the federal government or any of its
instrumentalities, workers’ compensation, and the gross amount of “loss of time” insurance.
It does not include gifts from nongovernmental sources, or surplus foods or other
relief in kind supplied by a public or private agency.
(5) “Qualified school” means a nonpublic elementary or secondary school that is located
in this state and that satisfies the requirements prescribed by law for nonpublic
schools in this state.
(6) “Scholarship organization” means a charitable organization in this state that is exempt
from federal taxation under § 501(c)(3) of the internal revenue code, and that allocates
at least ninety percent (90%) of its annual revenue through a scholarship program
for tuition assistance grants to eligible students to allow them to attend any qualified
school of their parents’ choice represented by the scholarship organization.
(7) “Scholarship program” means a program to provide tuition assistance grants to eligible
students to attend a nonpublic school located in this state. A scholarship program
must include an application and review process for the purpose of making these grants
only to eligible students. The award of scholarships to eligible students shall be
made without limiting availability to only students of one school.
(8) “School-age student” means a child at the earliest admission age to a qualified school’s
kindergarten program or, when no kindergarten program is provided, the school’s earliest
admission age for beginners, until the end of the school year, the student attains
twenty-one (21) years of age or graduation from high school whichever occurs first.
(9) Designation. A donation to a scholarship organization, for which the donor receives a tax credit
under this provision, may not be designated to any specific school or student by the
donor.
(10) Nontaxable income. A scholarship received by an eligible student shall not be considered to be taxable
income.