S0306 creates a new refundable income tax credit for South Carolina taxpayers whose children attend qualifying private schools, parochial schools, or home schools in grades K-12. The credit starts at up to $2,000 per child for tax year 2025 and increases in later years to $4,000, $6,000, and then $8,500 per child, capped at the amount of tuition paid. Beginning in tax year 2027, the credit becomes refundable, meaning taxpayers could receive a refund if the credit exceeds their tax liability.
To qualify, schools must meet several administrative requirements, including providing an affidavit that they are a K-12 school, an address, enrollment availability, a statement that they will educate students according to family expectations, an annual financial statement, and an EIN; home schools must be registered as required by state law. Taxpayers must provide proof of tuition payment, cannot claim the credit in the same year as the exceptional needs tax credit, and are ineligible if the child attended public school for more than 44 days in the tax year. The bill also authorizes penalties for fraudulent claims and gives parents a private right of action and the Attorney General enforcement authority.
The bill would amend Title 12 of the South Carolina Code by adding Section 12-6-3830 and would also require the Department of Revenue and the Treasurer to administer the program, issue eligibility certificates, publish a list of qualifying schools, and promulgate regulations. It further directs the department to reduce State Aid to Classrooms by the same dollar amounts for each student who leaves public school for a qualifying private, parochial, or home school, effectively shifting state education funding alongside the tax credit.
The general sentiment reflected by the bill text and caption is strongly supportive of school choice and tuition assistance for families using nonpublic education options. No committee transcripts or votes were provided, so there is no recorded debate or roll-call evidence here to show formal support or opposition. However, the structure of the bill suggests likely interest from school-choice advocates and likely concern from public-education supporters because it redirects state resources away from public schools and creates a new refundable tax expenditure.
Notable points of contention likely include the fiscal impact on the state budget, the reduction in State Aid to Classrooms, and whether the credit should extend to home schooling and parochial/private schooling. The bill’s private right of action and enforcement provisions may also draw scrutiny because they create litigation exposure and administrative obligations. Another possible point of debate is the eligibility rule excluding students who attended public school for more than 44 days, which could be viewed as limiting access or as preventing dual enrollment abuse.
S0306 would add a new section to Title 12 of the South Carolina Code establishing a tuition tax credit for K-12 private, parochial, and home-school expenses, with the credit increasing over several years and becoming refundable in 2027. It would also create new compliance, certification, and enforcement duties for the Department of Revenue, the State Treasurer, and the Attorney General, while imposing fraud penalties and a private cause of action for violations. In addition, the bill would reduce State Aid to Classrooms for each student who leaves public school to use the credit, directly affecting state education funding formulas and the distribution of public dollars.
No committee discussion or vote record was provided, so there is no documented legislative sentiment from hearings or floor action. Based on the bill’s content and caption, the measure appears designed to advance school choice and tuition relief, which would likely be viewed favorably by supporters of private and home education. At the same time, the bill’s diversion of funds from public education and its refundable credit structure suggest likely opposition from public-school advocates and fiscal skeptics.
The main likely points of contention are the bill’s fiscal cost, its impact on public school funding through reductions in State Aid to Classrooms, and the policy choice to subsidize private, parochial, and home-school tuition through the tax code. Critics may also object to the refundable nature of the credit, the broad eligibility for nonpublic schooling, and the private enforcement mechanism that allows parents to sue for violations. Supporters are likely to emphasize family choice, tuition affordability, and expanded access to alternative education options.