Committee adopts amendment and passes education options tax credit bill amid Republican objections

A House committee on Wednesday adopted an amendment to HB2632 and then approved the bill as amended, even as at least one member said Republicans would vote against the measure because of its impact on the Earned Income Tax Credit (EITC).

The chair called up HB2632 and introduced Amendment A03811. A staff member identified as John described the amendment: "The amendment lines the caps for the programs within the educational tax credits for fiscal year 2627 with the caps in current law. So there's no change to the caps, with the amendment relative to current law," and for fiscal year 2728 it maintains current-law caps except two programs are combined while the aggregate remains unchanged.

Committee discussion showed bipartisan agreement to adopt the amendment. The chair said Republicans and Democrats alike would vote in the affirmative on the amendment, and the amendment was adopted.

On the bill as amended, one committee member voiced persistent objections: "we still have some very serious concerns with this bill and its detrimental impact on the EITC program," and said Republicans would vote in the negative on HB2632. Democrats, the chair said, would vote in the affirmative; the chair then announced that "the ayes will have it" and that HB2632 "will pass this committee as amended" and be referred to the House floor.

Why it matters: HB2632 would replace the current educational tax credit program with an education options tax credit beginning in fiscal year 27-28 and includes program-cap language that, according to staff, preserves aggregate caps. Committee members flagged potential downstream effects on the Earned Income Tax Credit.

The committee concluded its business and adjourned; HB2632 will proceed to the House floor for further consideration.