The proposed bill establishes a property tax credit program for owners of property subject to taxation under chapter 10-4 in South Dakota. Property owners may receive a credit against property taxes levied for the school district where their property is located, based on eligible education expenses incurred for children aged five to eighteen who are enrolled in nonpublic schools or receiving alternative instruction. Eligible expenses include tuition, school fees, and necessary educational materials. The credit amount cannot exceed the total school district taxes owed for that year and is capped at eighty percent of the current year's per student equivalent in the general state aid to education formula.

To apply for the property tax credit, property owners must submit an application to the county director of equalization by January first, providing details about their property and the eligible education expenses incurred. The application must be verified by the school and include documentation of the expenses. Additionally, property tax bills will reflect any credits received, and the Department of Revenue is tasked with creating rules for the application process and necessary documentation.