By joining the federal scholarship program, Kentucky will allow eligible taxpayers to receive dollar-for-dollar federal tax credits of up to $1,700 for qualifying contributions to scholarship-granting organizations, frequently called SGOs.
"The tax credit becomes available 2027. As far as the SGOs are concerned, obviously that's the part that's kind of getting into gear right now,"
said Michael Wilson, deputy general counsel for the Secretary of State's Office.
Married couples filing jointly could claim up to $3,400 in tax credits if they choose to participate.
But public school advocates, including Gov. Andy Beshear — who attempted to veto the plan — worry that the benefits will have the result of shifting public dollars away from public schools.
"The real benefit in SGO is obviously not public schools. That's not obviously the focus," said Gary Fields, superintendent of Bowling Green Independent Schools. He told lawmakers Thursday that public schools don't have tuition and have eliminated many of the other fees that the scholarship could apply to.
"Most districts don't have many fees left. We don't charge technology fees. All of our kids get devices. The textbook fees of old are gone. Students are not charged fees for things, so the ability for us to recoup money or to use money from an SGO for fees is really limited," Fields explained.
Greg Ross, who heads up Louisville's West End School, argued the scholarships are a worthy investment, no matter where the students go to school.
"Sometimes you have to step outside the box.
I don't think this should be a public ed, a private ed discussion. It should be serving kids discussion," he said.
Organizations seeking to participate should review the Secretary of State's program information and filing guidance.
November 30th is the initial declaration deadline under Kentucky's proposed regulation.