Creates a tax credit for educational expenses incurred by parents whose children attend a home school, a virtual school, or a school outside of their district of residence
The enactment of SB565 would amend chapter 135 of Missouri law, specifically impacting taxpayers with educational expenses related to non-public schooling. Families will have increased flexibility in choosing educational environments for their children, as they will be financially incentivized to explore options outside the public school system. This change could potentially redirect public funding away from traditional public schools, as the tax credits may create a migration to home, private, and virtual schools, promoting competition within the educational sector.
Senate Bill 565 proposes the establishment of a tax credit for Missouri parents who incur educational expenses while educating their children in home schools, private schools, or virtually, provided these schools are located outside their district of residence. Set to begin on January 1, 2024, the bill allows taxpayers to claim a tax credit equal to a percentage of their eligible educational expenses, offsetting their state tax liability. The maximum credit available is capped at $6,500, ensuring that families with substantial education costs can benefit significantly from this financial relief.
Sentiment around SB565 is divided among stakeholders in the education community. Proponents argue that this bill is an essential step towards enhancing parental choice in education, offering necessary support to families opting for alternatives to public schooling. Conversely, opponents raise concerns about the potential for decreased funding for public schools, which may further exacerbate inequities within the educational system. They worry that the tax credits could lead to a reduction in both resources and support for students who remain in the public education system.
Key points of contention regarding SB565 include concerns over its implications for educational equity and the potential for underfunding public schools. Critics argue that incentivizing home and private schooling at the expense of public school funding could widen the achievement gap among students, especially in low-income areas where parents may not afford the alternatives. Additionally, the limitation of the tax credits to schools outside a child's residential district raises logistical questions about accessibility and the overall effectiveness of these educational choices.