South Carolina H 3420: Providing Academic Choice in Education (PACE)

Bill Text

2025-2026 Bill 3420 Text of Previous Version (Dec. 06, 2024) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 3420

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS 
BY ADDING SECTION 12-6-3791 SO AS TO ALLOW AN INCOME TAX CREDIT FOR 
CONTRIBUTIONS TO A SCHOLARSHIP FUNDING ORGANIZATION THAT PROVIDES GRANTS FOR 
STUDENTS TO ATTEND CERTAIN INDEPENDENT AND HOME SCHOOLS, TO SPECIFY THE MANNER 
IN WHICH THE CREDIT IS CLAIMED, TO SPECIFY THE PROCESS BY WHICH CERTAIN 
ORGANIZATIONS AND SCHOOLS BECOME ELIGIBLE, TO SPECIFY CERTAIN INFORMATION WHICH 
MUST BE MADE PUBLIC, AND TO ALLOW THE STATE TREASURER AND DEPARTMENT OF REVENUE 
TO ENFORCE THE PROVISIONS OF THE CREDIT; AND BY REPEALING SECTION 12-6-3790 
RELATING TO THE EDUCATIONAL CREDIT FOR EXCEPTIONAL NEEDS CHILDREN'S FUND.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Article 25, Chapter 6, Title 
12 of the S.C. Code is amended by adding:

 Section 
12-6-3791. (A) As used in this 
section:

 (1) "Eligible School" means an 
independent school including those religious in nature, other than a public 
school, at which the compulsory attendance requirements of Section 59-65-10 may 
be met, that:

 (a) offers a general education to 
primary or secondary school students;

 (b) does not discriminate on the basis 
of race, color, or national origin;

 (c) is located in this State;

 (d) has an educational curriculum that 
includes courses set forth in the state's diploma requirements;

 (e) has school facilities that are 
subject to applicable federal, state, and local laws; and

 (f) is a member in good standing of 
the South Carolina Association of Christian Schools, the South Carolina 
Independent Schools Association, the Palmetto Association of Independent 
Schools, the American Montessori Society, the International Montessori Council, 
or the National Association of Private Schools or alternatively accredited by 
Cognia or the National Council for Private School Accreditation.

 (2) "Exceptional needs child" means a 
child:

 (a)(i) who has been evaluated in 
accordance with this state's evaluation criteria, as set forth in S.C. Code 
Ann. Regs. 43-243.1, and determined eligible as a child with a disability who 
needs special education and related services, in accordance with the 
requirements of Section 300.8 of the Individuals with Disabilities Education 
Act; or

 (ii) who has been diagnosed as either 
permanently or within the last three years by a licensed speech language 
pathologist, psychiatrist, or medical, mental health, psychoeducational, or 
other comparable licensed health care provider as having a neurodevelopmental 
disorder, a substantial sensory or physical impairment such as deaf, blind, or 
orthopedic disability, or some other disability or acute or chronic condition 
that significantly impedes the student's ability to learn and succeed in school 
without specialized instructional and associated supports and services tailored 
to the child's unique needs; and

 (b) the child's parents or legal 
guardian believes that the services provided by the school district of legal 
residence do not sufficiently meet the needs of the child.

 (3) "Disadvantaged child" means a 
child who is eligible for the federal free or reduced lunch program and whose 
family meets the qualifications for federal Medicaid benefits.

 (4) "PACE Scholarship child" means a 
child who is a South Carolina resident who, immediately before receiving a 
scholarship or tuition grant under this section and enrolling in an eligible 
school or program, was enrolled in a South Carolina secondary or primary public 
school or who is eligible to enroll in a qualified first grade, kindergarten, 
or prekindergarten program; provided, however, that if a student is considered 
to be an eligible student pursuant to this item, he shall continue to qualify 
as such until he graduates, reaches the age of twenty, or returns to a public 
school, whichever occurs first; and provided, further, that the enrollment 
requirement must be waived in the case of a student who, based on the school 
attendance zone of his primary residence, is or would be assigned to a public 
school that the South Carolina Department of Education determines to be a low 
performing priority school, or who is the subject of an officially documented 
case of school based physical or psychological violence or student related 
verbal abuse threatening physical harm immediately before receiving a 
scholarship or tuition grant under this section.

 (5) "Nonprofit scholarship funding 
organization" means a charitable organization that:

 (a) is exempt from federal tax 
pursuant to Section 501(a) of the Internal Revenue Code by being listed as an 
exempt organization in Section 501(c)(3) of the tax cod