Bill > SB549

This bill establishes a new income tax credit for K-12 education expenses specifically for public school students, allowing parents, guardians, and teachers to claim a credit of up to $1,250 for various educational costs. The credit can be used for expenses such as school tuition, fees, textbooks, instructional materials, online learning programs, curriculum, tutoring, educational therapies, assessment tests, extracurricular activities, educational supplies, transportation, and cooperative educational program fees. Importantly, the credit cannot be refunded if the taxpayer's tax liability is less than the credit amount. Eligible education providers include public schools, accredited or provisionally accredited institutions, and some non-accredited providers who have informed parents of their status. The bill specifies that the purpose of the tax credit is to help parents, guardians, and teachers manage the increasing costs of providing public education. The tax credit will be subject to periodic review by the revenue interim committee and will apply to income tax years beginning on or after January 1, 2026, ensuring that taxpayers can start benefiting from this credit in the 2026 tax year.