Providing Academic Choice in Education (PACE)
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.
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.
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.