Urges Governor to take steps for State participation in federal tax credit scholarship program.

2024-2025 Regular Session Introduced by Bob Singer

Urges the Governor to opt the state into a federal tax-credit scholarship program (up to $1,700/year) via SGOs, enabling K-12 scholarships and tax relief for families.

Introduced in the Senate, Referred to Senate Education Committee

#governor #incometax

Summary — SR 138

Title: Urges Governor to take steps for State participation in federal tax credit scholarship program
Classification: Senate Resolution (non‑binding)
Subject areas: Governor, Income Tax
Introduced: February 21, 2025
Status (per bill header): Introduced in the Senate; referred to Senate Education Committee
Primary sponsors: Marty Harbin; Billy Hickman; Bo Hatchett; John Albers; Steve Gooch; Seth Lewis; Robert W. Singer; Patrick McMath
Related: Companion resolution SCR 169

Purpose / Intent

SR 138 is a non‑binding Senate resolution that urges the Governor to take whatever steps are necessary to ensure the State participates in a new federal tax credit scholarship program created by Pub.L.119‑21 (referred to in the resolution as the “One Big Beautiful Bill Act”). The resolution frames participation as a way to deliver tax relief and expand educational choice for families in the state.

Key provisions and facts contained in the resolution

Describes the federal program (as enacted in July 2025):

Becomes effective January 1, 2027.
Allows taxpayers an annual federal tax credit of up to $1,700 for contributions to state‑recognized Scholarship Granting Organizations (SGOs).
SGOs must use contributions to grant scholarships to students for qualified elementary and secondary education expenses.

Lists eligible uses of scholarship funds, including tuition, fees, books, supplies, academic tutoring, special needs services, room and board, uniforms, transportation, and computer technology.

Notes that states have sole discretion to recognize/certify SGOs, and that the Governor (or another designated state official or entity under state law) decides whether the state will participate.

The resolution “urges the Governor to take all measures necessary” to opt the state into the federal program and directs that copies of the resolution be transmitted to the Governor and Lieutenant Governor.

Who would be affected

If the State opts in, taxpayers who contribute to certified SGOs could be eligible for the federal tax credit (up to $1,700 annually).

Families and students could gain access to scholarships for a broad set of K–12 education expenses.

State education administrators and any entity designated to certify SGOs would be responsible for program implementation, oversight, and compliance.

Public school funding and enrollment patterns could be indirectly affected (see considerations below).

Procedural / timeline aspects

The federal program becomes effective January 1, 2027; the resolution urges the Governor to act prior to that date to make state residents eligible.

SR 138 itself is a resolution urging executive action; it does not itself create or appropriate funds or set up state certification procedures. Implementation would require additional executive or legislative action to establish SGO recognition, oversight, and any necessary state rules.

Potential impacts and considerations

Supporters point to increased educational choice, additional support for families, and federal tax relief for contributors.

Considerations for policymakers include administrative capacity to certify and monitor SGOs, program accountability and transparency, equitable access for low‑income students, and potential effects on public school funding and enrollment.

Because SR 138 is advisory/urging in nature, concrete participation will depend on subsequent executive decisions or enabling state law/regulations.