# Kentucky opts into federal scholarship tax credit program  
**Published:** 2026-05-11T13:37:22Z  
**Source:** Kentucky House Majority Caucus (press release, emailed to editor@lexingtonky.news)  
**AI-generated:** yes (claude-haiku-4-5-20251001)  
**Canonical:** https://feeds.lexingtonky.news/article/kentucky-opts-into-federal-scholarship-tax-credit-program

FRANKFORT, Ky. — [Secretary of State Michael Adams signed House Bill 1 on Monday](https://governor.ky.gov/newsroom/), officially enrolling Kentucky in a new federal education tax credit program created by Congress as part of the One Big Beautiful Bill Act.

[The legislation enables Kentucky to opt into a federal initiative that offers a dollar-for-dollar federal tax credit — up to $1,700 annually — for individuals who donate to approved scholarship-granting organizations](https://www.owensborotimes.com/news/2026/04/house-bill-1-becomes-law-opening-door-to-federal-tax-credit-scholarship-program-in-kentucky/), according to the [House Majority Caucus](https://house.ky.gov/).

[The measure, sponsored by Representatives Kim Moser and T.J. Roberts, allows funds to be used for a range of qualified education expenses, including private school tuition, out-of-district public school tuition, tutoring, support services for students with disabilities, and online course fees](https://kentuckylantern.com/2026/02/26/gop-sponsor-says-scholarships-funded-by-us-tax-credit-would-also-benefit-public-schools/). [Eligibility for students is limited to those from households earning at or below 300% of the area's median income](https://spectrumnews1.com/ky/louisville/news/2026/02-24/kentucky-legislature-moves-to-adopt-federal-school-choice-tax-credit).

The bill's passage followed a contentious legislative debate. [Gov. Andy Beshear vetoed the measure in March, arguing it would divert public dollars from public schools](https://kentuckylantern.com/2026/03-13/beshear-vetoes-bill-opting-ky-into-k-12-scholarships-supported-by-new-us-tax-credit/), but [Kentucky lawmakers voted on partisan lines to override his veto](https://www.lpm.org/news/2026-03-17/kentucky-legislature-overturns-beshears-veto-of-education-tax-credit), with [the House voting 77-14 and the Senate voting 31-5 to override the governor's objections](https://news.ballotpedia.org/2026/03/25/kentucky-legislature-overrides-veto-of-bill-opting-into-federal-school-choice-tax-credit-scholarship-program/).

[The program is scheduled to take effect for the 2027 tax year, with the Kentucky Secretary of State's Office responsible for establishing regulations, registering scholarship organizations, and submitting a list of approved organizations to the federal government](https://www.owensborotimes.com/news/2026/04/house-bill-1-becomes-law-opening-door-to-federal-tax-credit-scholarship-program-in-kentucky/).

[More than 25 states have already opted in](https://www.lpm.org/news/2026-02-24/kentucky-legislature-moves-to-adopt-federal-school-choice-tax-credit), according to legislators who supported the bill. [Supporters say the bill would allow K-12 students and their families to benefit from education assistance grants funded by a federal tax credit at no cost to the state and without the use of tax dollars](https://kentuckylantern.com/2026/02-26/gop-sponsor-says-scholarships-funded-by-us-tax-credit-would-also-benefit-public-schools/). However, [Democratic critics, including Rep. Adrielle Camuel from Lexington, argued the bill diverts public dollars away from public education](https://www.lpm.org/news/2026-03-17/kentucky-legislature-overturns-beshears-veto-of-education-tax-credit).

## Sources

- [Kentucky House Majority Caucus press release announcing HB 1 signing](https://house.ky.gov/)
- [The Owensboro Times reporting on HB 1 becoming law](https://www.owensborotimes.com/news/2026/04/house-bill-1-becomes-law-opening-door-to-federal-tax-credit-scholarship-program-in-kentucky/)
- [Kentucky Lantern coverage of HB 1 debate and Beshear veto](https://kentuckylantern.com/)
- [Louisville Public Media reporting on veto override](https://www.lpm.org/)
- [Spectrum News 1 Kentucky coverage of bill passage](https://spectrumnews1.com/ky/louisville/news/)
- [Ballotpedia summary of veto override vote counts](https://news.ballotpedia.org/2026/03/25/kentucky-legislature-overrides-veto-of-bill-opting-into-federal-school-choice-tax-credit-scholarship-program/)

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This article was generated by AI (claude-haiku-4-5-20251001) from a press release emailed to editor@lexingtonky.news by Kentucky House Majority Caucus, enriched with 3 web searches.