A key piece of Gov. Mark Sanford’s agenda, which would give parents tax credits to send their children to private schools, won its first round Tuesday.

After a four-hour public hearing, members of a House subcommittee voted 2-1 to send the bill to the full Ways and Means Committee.

But members also agreed the bill probably will be amended.

“I think we’ve found grand, grand information” that will help as the full committee considers the bill, said Rep. Shirley Hinson, R-Berkeley.

According to the more than 40 people who testified Tuesday, giving parents tax credits to send their children to private school either will wreck or repair the state’s struggling public schools.

The bill would allow low- and middle-income parents to receive up to $3,680 a year in tax credits to home school their children or send them to private schools.

The proposal, sponsored by Rep. Doug Smith, R-Spartanburg, would offer credits against property and income tax to parents whose taxable income is less than $75,000 a year.

The program would be phased in until fiscal year 2009-10. That year, the state estimates about 73,000 students would take part at a cost to S.C. taxpayers of $234.4 million plus $37.8 million in local property taxes.

The credits would be for 80 percent of tuition costs, or $2,560 for kindergartners, $3,200 for first- through eighth-graders, and $3,680 for ninth- through 12th-graders.

Students eligible for free or reduced lunch could get scholarships indirectly from the state up to the same amounts.

Smith said his own children attend public schools, adding, “I wouldn’t have it any other way.”

But the state must consider new ways to improve public schools, he said at the hearing. “It’s time for us to have a social, political and moral debate.”

Many private school administrators and home-school advocates support the plan, called the “Put Parents in Charge Act.”

But many Democrats, public school administrators and the S.C. Chamber of Commerce oppose it, some calling it a “back-door voucher plan.”

Smith’s proposal would drain money from public schools, opponents say. The bill wouldn’t require private schools to meet the quality standards public schools must meet, they argue.

They also say their calculations show the proposal would give more to people whose taxable income is close to $75,000.

“I support change. This, however, smells of tax relief,” said Phyllis Gildea of Mount Pleasant.

Supporters wearing electric green T-shirts from the South Carolinians for Responsible Government advocacy group filled the committee room to overflowing.

At least 500 showed up to lobby lawmakers or speak for the bill. Many said they want to be able to choose where to send their children to school.

“The only thing we’re asking for is to keep more of our hard-earned money,” said Patrick Dye, a pastor from northern Richland County, whose seven children are home-schooled.

The bill’s future is unclear.

Ways and Means Committee chairman Bobby Harrell, R-Charleston, said before Tuesday’s hearing that he had concerns. For one, he opposes credits toward property tax, a major source of income for schools and local government.

“I don’t expect it’ll include property tax when we’re said and done.”

Reach Talhelm at (803) 771-8339 or jtalhelm@thestate.com