Federal tax credits granted by House Bill 1 serve as major victory towards school choice in Kentucky

Maura Baker

Staff Writer

Kentucky House Bill 1, which allows federal tax credits to nonprofit organizations providing scholarships and aid for private schools, is now law. Effective 2027, the bill was formerly vetoed by Governor Andy Beshear, but lawmakers recently overturned the decision — making this a major victory for advocates of school choice.

According to Jason Hall, executive director of the Catholic Conference of Kentucky, individuals who donate to these such organizations get a tax credit of up to $1,700 per year. Under the new law, “those scholarship granting organizations then have to provide scholarships on a needs-based approach,” said Mr. Hall. And that money can be given to families in need of assistance regardless if they are attending private or public school — as these tax credit supported donations can go to any educational need — including tuition, technology or tutoring. Donors can also request funds be allocated to specific schools, including Catholic schools.

Previously, similar tax credit programs in Kentucky were vetoed due to a provision in the Kentucky constitution prohibiting state tax money from supporting private schools. This does not apply to House Bill 1 as a federal program, allowing the program to be implemented state-wide.

One of the biggest struggles of seeing the bill passed — and part of the continuous struggle towards school choice state wise — was “a lot of misinformation,” according to Andrew Vandiver, a major proponent of school choice and formerly the associate director of the Catholic Conference of Kentucky. “It’s not about hurting public schools, or taking anything away from public schools,” he said. “This is just another opportunity to help kids.”

Optimistic about the program, Mr. Vandiver said that “the thing (he’s) really excited about is that this is going to bring millions of dollars into Kentucky to help kids.”

“You’re going to see nonprofits pop up around the state, including in the Diocese of Covington,” said Mr. Vandiver. “It’s going to really encourage charitable giving.”

“Kentucky is one of very few states that has no form of educational choice,” said Mr. Hall. “I’m hopeful that this will remove the stigma and show that we can really work together and support all kids in a better way.”