By Tom Latek
Kentucky Today
After the Kentucky Supreme Court this week declared state funding of charter schools is unconstitutional, two Republican House members filed a bill to allow Kentuckians to participate in the forthcoming federal scholarship tax credit initiative.
Reps. Kim Moser of Taylor Mill and T.J. Roberts of Burlington have introduced House Bill 1, which they say reflects a clear commitment to pursuing every available avenue to expand opportunity for Kentucky students and to restore to parents the ability to direct their children’s education in a way that best meets their needs.
“By participating in the Education Freedom Tax Credit, Kentucky students will not miss out on these scholarships, which would otherwise go to students in other states,” Moser said.
With the passage of HR 1 in 2025, President Donald Trump and Congress established the Education Freedom Tax Credit, a tax credit scholarship program for K-12 education beginning in the 2027 tax year. It provides a dollar-for-dollar federal tax credit for up to $1,700 for contributions to qualified scholarship granting organizations (SGOs). States must opt-in to the federal program before families can participate.
The provisions of Kentucky’s HB 1 would allow Kentuckians to use the HR 1 dollar-for-dollar federal tax credit for donations made to Kentucky SGOs. These nonprofit organizations have a primary mission of providing scholarships to eligible K-12 students attending qualified private schools.
Under HR 1, SGO refers to nonprofit organizations that receive contributions for primary and secondary education scholarships for public, private, and home school students. These funds would be used to pay for a variety of educational opportunities.
As of Jan. 27, 23 states have opted in to the Education Freedom Tax Credit, including Virginia, Colorado, and New Hampshire.
HB 1 has been assigned to the Housew Appropriations and Revenue Committee.