Page 1 of 2 LRC 2022-BR1544-SB136
COMMONWEALTH OF KENTUCKY FISCAL NOTE STATEMENT
LEGISLATIVE RESEARCH COMMISSION
2022 R EGULAR SESSION
MEASURE
2022 BR NUMBER 1544 SENATE BILL NUMBER 136
TITLE AN ACT relating to the tuition credit.
SPONSOR Senator Wil Schroder
FISCAL SUMMARY
STATE FISCAL IMPACT: YES NO UNCERTAIN
OTHER FISCAL STATEMENT (S) THAT MAY APPLY: ACTUARIAL ANALYSIS
LOCAL MANDATE CORRECTIONS IMPACT HEALTH BENEFIT MANDATE
APPROPRIATION UNIT(S) IMPACTED:
FUND(S) IMPACTED: GENERAL ROAD FEDERAL RESTRICTED
FISCAL ESTIMATES 2021-2022 2022-2023 2023-2024 ANNUAL IMPACT AT
FULL
IMPLEMENTATION
REVENUES ($100,000) ($100,000) ($100,000) ($100,000)
EXPENDITURES
NET EFFECT ($100,000) ($100,000) ($100,000) ($100,000)
( ) indicates a decrease/negative
PURPOSE OF MEASURE: This bill amends KRS 141.069 to allow students who participate in
the Academic Common Market (ACM) to qualify for the tuition tax credit. Currently, only
individuals attending a Kentucky institution qualify for this tax credit. Under the Southern
Regional Compact of Southern States for Regional Educational Services and the ACM, students
who are pursuing degrees that are not offered at a Kentucky institution are able to attend a
participating out-of-state institution and pay their in-state tuition rates. Under this proposed
legislation, these students would now qualify for this nonrefundable Kentucky tax credit.
FISCAL EXPLANATION : The calculation of the tuition tax credit is reliant on the federal
American Opportunity and Lifetime Learning education credits. One must be eligible for the
credit at the federal level in order to qualify for the Kentucky tuition credit, as the Kentucky
credit is a percentage of the amount allowed on the federal tax return. The maximum Kentucky
American Opportunity credit that could be granted per student, per taxable year is $625, and the
maximum Lifetime Learning credit is $500. These charts show the estimated negative fiscal
impact if each student were eligible and claimed the maximum credit amounts on their return.
The Department of Revenue is already administering this credit, and there will be no additional
administrative expenses associated with the expansion of the tuition tax credit.
Page 2 of 2 LRC 2022-BR1544-SB136
American Opportunity
Academic
Year
Number of
Students
Attending
ACM Schools
Aggregate
Credit Total
21/22 167 $104,375.00
20/21 146 $91,250.00
19/20 184 $115,000.00
18/19 159 $99,375.00
17/18 205 $128,125.00
DATA SOURCE(S): LRC Staff, Council on Postsecondary Education
PREPARER: Sarah Watts NOTE NUMBER: 25 REVIEW: JAB DATE: 1/27/2022
Lifetime Learning
Academic
Year
Number of
Students
Attending
ACM Schools
Aggregate
Credit Total
21/22 167 $83,500.00
20/21 146 $73,000.00
19/20 184 $92,000.00
18/19 159 $79,500.00
17/18 205 $102,500.00