South Carolina 2025-2026 Regular Session

South Carolina House Bill H3420

Introduced
1/14/25  

Caption

Providing Academic Choice in Education (PACE)

Impact

Should this bill be enacted, it would have significant implications for both state law and educational funding mechanisms. It repeals the previous law concerning the educational credit for exceptional needs children’s funds, thereby creating a more streamlined approach to scholarship funding through the new tax credits. The bill allows for a cumulative maximum of $25 million in tax credits for exceptional needs students and disadvantaged children each year, with additional caps for PACE scholarship children and home school students. This mechanism is designed to channel private donations more efficiently into aiding students in need of financial assistance for educational expenses.

Summary

House Bill 3420 aims to amend the South Carolina Code by introducing Section 12-6-3791, which provides an income tax credit for donations made to nonprofit scholarship funding organizations. These organizations grant scholarships for students attending eligible independent and home schools. The bill seeks to enhance educational choices for children, particularly those who are exceptional needs or disadvantaged, by offering financial incentives for contributions to support their education. It outlines eligibility criteria for schools and organizations, specifying the responsibilities of the State Treasurer and the Department of Revenue to oversee the implementation and compliance with the new provisions.

Contention

Notably, the bill includes provisions that prevent public school funding from being diverted, as all contributions must not specify beneficiaries in terms of individual students or schools. This raises potential concerns about the overall impact on public schools and their funding. Critics may argue that the bill shifts focus and resources away from public education, possibly exacerbating inequalities, as the scholarship funds could predominantly benefit families who already have the means to contribute. Overall, the balance between aiding underprivileged students and sustaining public school systems may become a key point of discussion among lawmakers and constituents alike.

Companion Bills

SC S0050

Similar To Academic Choice in Education (ACE)

Previously Filed As

SC S0181

Academic standards

SC H5407

South Carolina Student Physical Privacy Act

SC H4124

DHEC Restructuring

SC H3456

Teacher and State Superintendent Credentials

SC H5243

Health Care Market Reform Measures Study Committee

SC H4219

Property tax

SC S0037

Public defenders allowed to carry concealable weapons within the State

SC H3286

Freedom of Employment Contract Act

SC H3341

Firearms

Similar Bills

SC S0050

Academic Choice in Education (ACE)

PA HB27

In preliminary provisions, further providing for Basic Education Funding Commission and for special provisions applicable to limited school years, establishing the Child Reunification Program in the Department of Education and providing for minimum number of days or hours, for public job posting database, for instructional vacancy data and for data transparency; in duties and powers of boards of school directors, further providing for additional schools and departments; in school finances, providing for school district budget timeline for 2024 and for procedure for securing approval of electors; in grounds and buildings, further providing for limitation on new applications for Department of Education approval of public school building projects; in school directors' associations and county boards of school directors, further providing for powers and duties; in intermediate units, further providing for visual services and for school safety and security enhancements; in professional employees, repealing provisions relating to religious garb, insignia, etc., prohibited and penalty; in certification of teachers, further providing for substitute teaching permit for prospective teachers, for locally issued temporary certification for substitute teachers and for permit for classroom monitors; providing for Educator Pipeline Support Grant Program; in pupils and attendance, further providing for compulsory education of physical defectives, for dependent children, for cost of tuition and maintenance of certain exceptional children in approved institutions, for payment of cost of tuition and maintenance of certain exceptional children, for transfer of funds for transferal programs and for children under six with defective hearing and parent or guardian advised of schools, etc.; in safe schools, further providing for definitions and for Office for Safe Schools, repealing provisions relating to regulations and to reporting, further providing for policy relating to bullying and for maintenance of records, repealing provisions relating to safe schools advocate in school districts of the first class, to standing, to enforcement and to construction of article and other laws; in school safety and security, further providing for definitions and for School Safety and Security Committee, providing for duties of committee, further providing for School Safety and Security Grant Program, providing for Targeted School Safety Grants for Nonpublic Schools and School Entities Program, for standardized protocols, for county safe schools' collaborative and for school mental health grants for 2023-2024 school year, further providing for school safety and security coordinator training and providing for reporting and memorandum of understanding, for safe schools advocate in school districts of the first class and for enforcement; in school security, further providing for definitions, for school police officers, for annual report and for school security guards; in school health services, further providing for dental examinations and dental hygiene services and providing for eating disorder awareness and education; in drug and alcohol recovery high school program, providing for enrollment of students; in terms and courses of study, providing for calculation of average daily membership for a dual credit course and further providing for Economic Education and Personal Financial Literacy Programs; in early learning programs, providing for quarterly meetings; in character education program, further providing for character education program; providing for the Dual Credit Innovation and Equity Grant Program; in high schools, further providing for attendance in other districts; in community colleges, further providing for financial program and reimbursement of payments; in educational tax credits, further providing for qualification and application by organizations, for limitations and for low-achieving schools; in school districts of the first class, further providing for qualifications of principals and teachers; in funding for public libraries, providing for State aid for fiscal year 2023-2024; in credit card marketing, further providing for regulation of on-campus credit card marketing; in reimbursements by Commonwealth and between school districts, further providing for definitions and for payments on account of pupils enrolled in career and technical curriculums, providing for Level-Up Supplement for 2022-2023 school year, further providing for payments on account of courses for exceptional children, for payments to intermediate units, for assistance to school districts declared to be in financial recovery status or identified for financial watch status, for payments, for payments on account of pupil transportation, for Ready-to-Learn Block Grant and for payment of required contribution for public school employees' Social Security; in construction and renovation of buildings by school entities, further providing for applicability; providing for School Environmental Repairs Program; abrogating a regulation; and making an editorial change.

FL H0001

Education

NJ S2437

"Opportunity Scholarship Act"; establishes pilot program in Department of Treasury providing tax credits to taxpayers contributing to scholarships for low-income children.

NJ A613

"Opportunity Scholarship Act"; establishes pilot program in Department of Treasury providing tax credits to taxpayers contributing to scholarships for low-income children.

NJ A643

"Opportunity Scholarship Act"; establishes pilot program in Department of Treasury providing tax credits to taxpayers contributing to scholarships for low-income children.

FL H1403

School Choice

TX SB1015

Relating to a franchise tax or insurance premium tax credit for contributions made to certain certified nonprofit educational assistance organizations.