The added language had come from Senate Bill 173, a failed bill that faced fierce opposition from public school advocates concerned about the half billion dollar a year cost. SB 173 would have established so-called "education scholarship accounts," which, unlike the indirect private school subsidies in the existing tax credit scholarships, would have allowed direct state subsidies to private schools.
The tax credit program money doesn't come directly from the state. Rather, taxpayers assign the money to a private school and get a like reduction off their state taxes owed. The scholarship organizations determine which students get scholarships at those schools.
Public school advocates also oppose the tax credits because they reduce the total revenue of the state, leaving less money for public services, such as education.
Last year, the General Assembly approved a bill by Carson that increased the size of the tax credit program to $100 million a year. The push to raise the cap was driven by the perceived popularity of the program, which typically sold out on the first day of availability. But taxpayers have been less enthusiastic this year after proposed changes to federal tax rules made it less profitable as a tax shelter.