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JBC agrees to introduce technical fixes to higher-education tax credit law amid cost questions
Summary
The Joint Budget Committee voted to introduce a bill that makes technical changes to the recently enacted higher-education refundable tax credit and that preserves the credit for now while staff and lawmakers continue work to refine administration and cost estimates.
The Joint Budget Committee on April 28 voted to introduce a bill containing technical fixes to the higher-education expenses refundable income tax credit and to hold further deliberation on longer-term changes after additional cost analysis.
Amanda Bickle of the Joint Budget Committee staff briefed members on the draft. The proposed changes would clarify timing and reporting requirements, change some date references from academic-year to calendar-year conventions, move institutional reporting deadlines (from Jan. 15 to Jan. 31 for some items), and add confidentiality and information‑sharing rules between the Department of Revenue and the Department of Higher Education to support program administration.
Bickle told the committee the draft also includes contingency language in case federal rules restrict access to FAFSA data; if institutions cannot disclose federal FAFSA-derived eligibility, the Department of Higher Education would establish a separate application process for program eligibility. The draft includes small additional FY 2025‑26 general‑fund appropriations for Department of Revenue implementation (roughly $135,000 in the initial draft moving to about $200,000 in a later year) to cover expected administrative complexity.
Committee members expressed concern about the program’s uncertain long-term cost. Staff noted an initial estimate of about $36.7 million for the first full year rose in some later modeling to about $65 million, but staff emphasized take-up and institutional implementation vary and that more complete data will not be available until late 2026. The governor’s office communicated support for retaining the credit while JBC and other stakeholders continue work on long-term cost containment and potential pay‑fors.
Given the time left in the session and open questions about offsets, the committee approved introducing the technical‑fixes version of the bill (the motion passed 6‑0). Committee leaders said they will continue work next legislative session on possible additional adjustments, including any phase‑out or offsets, after fuller fiscal information is available.
