Committee hears hours of testimony on Senate Bill 87, which would expand income‑based tax‑credit scholarships and raise the cap

The House Education Committee heard extensive testimony on Senate Bill 87, a proposed change to the Low Income Student Scholarship Act that would expand eligibility for scholarships funded by private donations that qualify for a state tax credit, raise the annual aggregate credit cap from $10 million to $15 million and allow automatic 25% increases when demand exceeds 75% of the cap up to a statutory ceiling of $25 million.

Revisor Jason Long told the committee SB 87 keeps the existing 250% of federal poverty level income threshold for low‑income eligibility but would add three categories of students who would be eligible regardless of income: students placed in foster care or kinship care at any time before graduation or age 21; students whose parent is on active duty in the U.S. military or who were killed in the line of duty; and students whose parent is an emergency medical service provider, firefighter or law‑enforcement officer. The bill as reported also removes an earlier Senate amendment that would have made the donor tax credit refundable up to 100%; under the version described to the committee the donor credit remains a 75% tax credit against state tax liability. The revisor said the bill would be effective July 1 if enacted and that the Senate had passed the…