Committee debates implementation rules for federal education scholarship tax credit

Representative Carrie Weems said HB 13-06B brings the legislature into the process of standing up scholarship‑granting organizations (SGOs) tied to the federal education tax credit and described how the federal program provides a tax credit of up to $1,700 for contributions to qualifying SGOs. She said the sponsor’s aim is to include public schools, home‑school and microschools, and to ensure the state provides oversight and accountability for organizations that distribute scholarships.

Lieutenant Governor Tony Van Heisen praised the federal credit but cautioned the committee against premature state action before the final federal regulations are issued; he said federal rules will govern eligible uses and SGO requirements and warned that conflicting state law could create compliance problems. Secretary of Education Joe Graves echoed concerns about prematurity and oversight, noting federal rules were expected later and that the department wants to avoid conflicting requirements.

Witnesses from micro‑school associations, homeschool advocates, and other stakeholders expressed concerns about definitions, rushed drafting, and potential regulatory consequences — including the risk that a new statutory category of “micro‑school” could be unintentionally regulated in the future.

Weems answered that the amendment adopted in committee broadened eligibility and that the Legislature routinely updates statutes to align with federal rules; she urged the panel to move the bill forward so state actors and potential SGOs have time to prepare before 01/01/2027. Representative Ismay and others ultimately moved the bill to the 40 first day calendar to allow more time for information and stakeholder work.