Committee approves smaller teacher tax credit but widens eligibility to boost rural recruitment

Sen. Hickman presented SB515 (LC492750S), describing it as a modification of an expiring teacher tax-credit program intended to recruit educators to hard-to-staff schools. "What we did, we reduced the credit down to $2,500 from 3,000 and we went from 1,000 people that would qualify to 1,200," he told the committee, adding that the total program exposure would remain about $3 million per year.

The sponsor said uptake under the existing $3,000 credit has been low: Department of Revenue figures quoted in committee showed average per-recipient usage of about $2,002.94 in 2022 and $22–$24 in more recent years, suggesting limited participation and prompting the tradeoff of a smaller per-person credit for more eligible teachers. The bill prioritizes the bottom 25% of schools (by an established metric) and target subject shortages — mathematics, special education, CTAE, reading/writing/ELA (with reading endorsements required for certain entrants).

Members asked whether the credit is refundable (which would benefit teachers with zero tax liability). Legislative counsel said converting the credit to refundable status would require additional fiscal study and consultation with ways-and-means experts; the sponsor agreed that a fiscal note would be necessary for such a change. The sponsor also asked the State Board of Education and the Department of Education to do more promotion so eligible teachers know to apply.

Committee action: After questions on utilization and mechanics, the committee passed SB515 on a voice vote and recorded the House member who would carry the bill forward. The transcript does not provide a roll-call tally.