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Senate advances tuition-tax-credit proposal for low- and middle-income families
Summary
Senate Bill 160, a first-substitute tuition tax credit covering 25% of in-state tuition up to $500 for eligible low- and middle-income taxpayers, cleared the Senate third-reading calendar after sponsors explained income caps and per-return limits.
SALT LAKE CITY — The Utah Senate advanced a first-substitute of Senate Bill 160 on Feb. 23, a proposal to create a tuition tax credit intended to ease higher-education costs for low- and middle-income families.
Sponsor Senator Steiner said the credit would cover 25 percent of tuition paid to Utah higher-education institutions up to a $500 cap per tax return, available only to joint filers with $30,000 or less in income and single filers with $20,000 or less. The sponsor emphasized the credit applies only to in-state public institutions and is intended to keep assistance within the Utah higher-education system; it would not be paid for private or out-of-state schools.
Senator Peters asked whether the $500 cap applied per student or per return; Senator Steiner clarified the cap is per return and could cover multiple students on the same return up to the $500 maximum. The committee distributed a summary sheet and the bill was described as a limited, targeted approach to address rising tuition and the state's relative reduction in higher-education general-fund support.
After committee amendments and a brief floor discussion, the Senate adopted the substitute and approved the measure by roll call: 27 aye votes, no nays, 2 absent. The bill will proceed to the House for further consideration.
Ending: The bill’s structure (income thresholds, $500 cap per return, in-state-only eligibility) will determine its reach and fiscal impact when scored in fiscal analysis and when the House considers companion measures.
Representative quotes from the floor: "The tuition tax credit would be 25% of tuition paid in any year up to a cap of $500," the sponsor said, adding the credit is targeted to low- and middle-income filers.
"Is that $500 per student or per return?" Senator Peters asked; the sponsor answered the credit is per return.
