All Roll Calls
Yes: 152 • No: 8
UtahS.B. 542026 General SessionSenateWALLET
Carson Smith Opportunity Scholarship Program Amendments
Sponsored By: Lincoln Fillmore (Republican)
Signed by Governor
EducationK-12 EducationState Tax CommissionRevenue and TaxationSpecial EducationTax Credits
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 2 benefits, 1 costs, 3 mixed.
Who qualifies and scholarship amounts
Parents can apply to a scholarship group for a Carson Smith scholarship. A child qualifies if they are in K–12 or age 3+ for preschool, live in Utah as the primary home, have a qualified disability shown by an IEP in the last 3 years or a team evaluation, and are not enrolled in public school during the award year. You can show Utah residency with two documents, such as a Utah tax return, utility bill, lease, or property tax record. You may also give your Social Security number and written consent so the State Tax Commission can confirm residency for the scholarship group. Award limits: K–12 up to 2.5× the WPU; preschool full‑time up to 1.0× WPU; preschool part‑time up to 0.55× WPU. These rules take effect May 6, 2026.
100% Utah tax credit for donors
If you donate to a recognized Carson Smith scholarship group, you can claim a nonrefundable Utah income tax credit equal to 100% of the amount on your tax credit certificate. Individuals, estates, and trusts can claim the credit for the tax year shown on the certificate. You cannot take this state credit for any amount you also deduct or credit on your federal return. The scholarship group must give you a certificate within 30 days and send the data to the State Tax Commission by the end of April. Credits are first‑come, first‑served under a statewide annual cap. The base cap was $5.94 million in 2021; in later years it rises only if last year topped 90% of the cap (by 10% plus the program’s participation growth). Groups can issue certificates only up to the cap. The credit applies to taxable years beginning on or after January 1, 2026, and the law takes effect May 6, 2026.
Cap on extracurricular spending
No more than 20% of a Carson Smith scholarship may be used for extracurricular activities and physical education. Use your total award to figure the 20% limit. This rule starts May 6, 2026. Physical therapy exceptions are handled elsewhere in law.
Stronger rules for private schools and providers
Private schools that take Carson Smith funds must have a Utah location; follow health, safety, and nondiscrimination laws; share tuition, fees, and special education details; test scholarship students yearly and report results to parents; meet teacher and background‑check standards; and provide recent CPA financial statements. Schools are ineligible if they require a transfer‑rights waiver, have a going‑concern audit note, lack working capital, charge more because of scholarship status, or are licensed residential treatment centers. Schools must apply to the State Board, agree not to rebate or share funds, and get on the approved list; a new owner must reapply. Service providers must give an EIN and program details, follow nondiscrimination, apply and complete orientation, avoid acting only as intermediaries, and not rebate funds. Parents cannot be paid providers for their own home‑based student. Scholarship groups accept new providers year‑round while enforcing rules.
Scholarship groups: spending rules and audits
Scholarship groups must spend at least 92% of revenue on scholarships. They may use up to 5% for administration and 3% for marketing, and all investment income goes to scholarships. They can carry forward up to 60% to the next year; any extra goes to the state treasurer. They must run an annual independent audit, file a CPA report by November 1, and disclose third‑party contracts and fees. They verify Utah residency (via the Tax Commission tool or two documents), help parents appeal denied reimbursements, and may not charge processing or pass‑through fees to eligible students. They also cannot award scholarships to relatives of their officers or send money to a school where the student has a relative who is an officer or administrator. These rules start May 6, 2026.
State oversight and penalties for scholarship groups
The State Board publishes program and scholarship‑group information online, sets accounting standards, runs background checks on group staff, and reports each year on costs, student counts, eligibility standards, and savings. It selects at least one nonprofit scholarship group through an RFP and sends the group’s contact to the Tax Commission within 10 days. If a group breaks rules, the Board sends written notice and gives 60 days to fix it; if not fixed, the Board can bar the group. A barred group cannot take new donations while barred or during an appeal, but may run existing scholarships during an appeal. Groups can appeal under the Administrative Procedures Act. These duties start May 6, 2026.
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Sponsors & Cosponsors
Sponsor
Lincoln Fillmore
Republican • Senate
Cosponsors
R. Neil Walter
Republican • House
Roll Call Votes
Senate vote • 3/6/2026
Senate/ concurs with House amendment
Yes: 27 • No: 0
House vote • 3/5/2026
House/ uncircled
Yes: 0 • No: 0
House vote • 3/5/2026
House/ substituted
Yes: 0 • No: 0
House vote • 3/5/2026
House/ passed 3rd reading
Yes: 67 • No: 2
House vote • 3/5/2026
House/ circled
Yes: 0 • No: 0
House vote • 2/26/2026
House Comm - Favorable Recommendation
Yes: 10 • No: 0
Senate vote • 2/23/2026
Senate/ passed 3rd reading
Yes: 20 • No: 5
Senate vote • 2/20/2026
Senate/ circled
Yes: 0 • No: 0
Senate vote • 2/20/2026
Senate/ passed 2nd reading
Yes: 22 • No: 1
Senate vote • 2/20/2026
Senate/ uncircled
Yes: 0 • No: 0
House vote • 2/3/2026
Senate Comm - Favorable Recommendation
Yes: 6 • No: 0
Actions Timeline
Governor Signed
3/19/2026Senate/ to Governor
3/13/2026SenateSenate/ received enrolled bill from Printing
3/13/2026SenateSenate/ enrolled bill to Printing
3/12/2026SenateEnrolled Bill Returned to House or Senate
3/12/2026Draft of Enrolled Bill Prepared
3/10/2026Bill Received from Senate for Enrolling
3/10/2026Senate/ signed by President/ sent for enrolling
3/6/2026SenateSenate/ received from House
3/6/2026SenateHouse/ to Senate
3/6/2026HouseHouse/ signed by Speaker/ returned to Senate
3/6/2026HouseHouse/ received from Senate
3/6/2026HouseSenate/ to House
3/6/2026SenateSenate/ concurs with House amendment
3/6/2026SenateSenate/ placed on Concurrence Calendar
3/6/2026SenateSenate/ received from House
3/6/2026SenateHouse/ to Senate
3/5/2026HouseHouse/ passed 3rd reading
3/5/2026HouseHouse/ substituted
3/5/2026HouseHouse/ uncircled
3/5/2026HouseHouse/ circled
3/5/2026HouseHouse/ 3rd reading
3/5/2026HouseHouse/ 2nd reading
2/26/2026HouseHouse/ committee report favorable
2/26/2026HouseHouse Comm - Favorable Recommendation
2/26/2026
Bill Text
Enrolled
3/12/2026
Substitute #3
3/4/2026
Substitute #1
2/27/2026
Substitute #2
2/27/2026
Introduced
12/29/2025
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