Corporations could put all their state income taxes into private school scholarships — instead of state coffers — under a bill that would create tax breaks to help parents move their children out of public schools.

It is one of the hardest provisions to stomach for some Republicans, who worry the tax credits would blow a hole in the state budget.

Supporters of the bill, backed by Gov. Mark Sanford, say there won’t be enough students taking advantage of the scholarships to create a financial problem. But several Republicans say they can’t support the bill with the provision as written.

“The dollars that are being pulled away from the state could be great, and we should be concerned about that,” said Rep. Nikki Haley, R-Lexington, one of many GOP lawmakers leaning against the bill, which likely will be debated in the House later this month.

Democratic leaders at a news conference today will contend that the bill would hurt public schools and state programs ranging from highway safety to caring for the mentally ill.

Republicans are divided. Several are beginning to push for compromises, such as limiting the amount that could be contributed or scaling back the program.

“I could live with a tax credit for a set amount,” said Rep. Ronny Townsend, R-Anderson. “I could probably buy into it in a skinny minute if it stopped at that.”

Called “Put Parents in Charge” by its supporters, the bill would give tax breaks to parents who want to home-school their children or send them to private school or another public school. Families with up to $75,000 in taxable income would qualify.

Businesses or others who contribute to scholarships for private education could take a tax credit for what they donate. Grant organizations created by the bill would manage the scholarships.

Denver Merrill, spokesman for a group advocating the tax credits, said lawmakers shouldn’t be concerned about the scholarship program. If the granting organizations didn’t use all the money in one year, he said, the extra dollars would roll over to the state’s general fund.

With the credits, parents who can’t afford private school tuition now could send their children to the schools of their choice, Merrill said. The competition would push public schools to improve, he said.

House Majority Leader Jim Merrill, R-Charleston, Denver Merrill’s brother, said concerns that the bill would wreck the state budget are “preposterous.”

He said the number of people who will take advantage of the credit will not be large enough to cause a huge financial loss to the state.

But he would be willing to consider limiting donations or other changes to make it more palatable to other lawmakers.

Still, several lawmakers say the bill is not worth the controversy it is causing. Many interviewed by The State want to try a pilot program in a few counties.

Supporters of the bill say talk of a pilot program is a veiled attempt by opponents to kill the program before it starts.

“You stick this thing in one little segment of South Carolina, and getting it out to everybody would be very difficult,” Denver Merrill said.

Rep. Joan Brady, R-Richland, said that might be the only way some Republicans will sign on. “If it’s a good idea, it’s going to be a good idea on a small scale.”

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