Kentucky Lawmakers Introduce Bill to Enable Federal Education Tax Credit

House Bill 1 would allow Kentucky residents to participate in the federal Education Freedom Tax Credit program.

Published on Feb. 22, 2026

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Following a Kentucky Supreme Court decision that deemed state funding for charter schools unconstitutional, Republican lawmakers in Kentucky have introduced House Bill 1. This legislation aims to enable Kentucky residents to participate in the federal Education Freedom Tax Credit, a program that offers a dollar-for-dollar tax credit of up to $1,700 for contributions to qualified scholarship granting organizations (SGOs).

Why it matters

The Education Freedom Tax Credit program is a new federal initiative that allows states to opt-in and provide additional educational opportunities for students. By passing House Bill 1, Kentucky would ensure its residents can take advantage of this tax credit and direct funds to SGOs that support a range of educational choices, including private schools, public schools, and homeschooling.

The details

House Bill 1 would enable Kentucky-based SGOs to receive donations that qualify for the federal tax credit. These nonprofit organizations focus on providing scholarships to eligible K-12 students attending private schools, as well as those in public and home school settings. The funds can be used for a variety of educational expenses. Reps. Kim Moser of Taylor Mill and T.J. Roberts of Burlington have spearheaded the bill, stating it's a commitment to expanding educational opportunities for Kentucky students.

  • The Education Freedom Tax Credit program is set to begin in the 2027 tax year.
  • House Bill 1 has been assigned to the House Appropriations and Revenue Committee for consideration in the 2026 legislative session.

The players

House Bill 1

Legislation introduced by Kentucky Republican lawmakers that would enable Kentucky residents to participate in the federal Education Freedom Tax Credit program.

Education Freedom Tax Credit

A federal program that offers a dollar-for-dollar tax credit of up to $1,700 for contributions to qualified scholarship granting organizations (SGOs).

Rep. Kim Moser

A Republican lawmaker from Taylor Mill, Kentucky who has spearheaded House Bill 1.

Rep. T.J. Roberts

A Republican lawmaker from Burlington, Kentucky who has spearheaded House Bill 1.

Scholarship Granting Organizations (SGOs)

Nonprofit organizations that receive contributions specifically for primary and secondary education scholarships and distribute funds to eligible students.

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What they’re saying

“We must ensure Kentucky students don't miss out on scholarships available to students in other states.”

— Rep. Kim Moser, Representative (newsy-today.com)

“House Bill 1 is a commitment to expanding educational opportunities for Kentucky students.”

— Rep. T.J. Roberts, Representative (newsy-today.com)

What’s next

House Bill 1 has been assigned to the House Appropriations and Revenue Committee for consideration in the 2026 legislative session. It is considered a top priority for House Republicans during this session.

The takeaway

By enabling participation in the federal Education Freedom Tax Credit program, House Bill 1 would provide Kentucky families with additional options and resources to support their children's educational needs, whether in private, public, or homeschool settings.