The bill would create a federal tax credit for individuals who donate cash or marketable securities to qualifying nonprofit scholarship organizations. The credit would generally be limited to the greater of $5,000 or 10% of the donor’s adjusted gross income, subject to an allocation cap and reductions for certain state tax credits. The bill would also exclude qualifying scholarships from a recipient’s gross income and set rules for scholarship organizations and eligible expenses. The bill was introduced and referred to House committees; it has not been enacted.
An individual donor could claim a credit for a qualifying donation, but only up to the amount allocated under the bill’s cap. A student may qualify if their household income is no more than 300% of the area median income and they are eligible to enroll in a public elementary or secondary school. Scholarships could pay for listed education costs at public, private, or religious schools, as well as qualifying homeschool expenses. The bill does not guarantee that any particular student will receive a scholarship.
The bill sets a $5 billion annual cap for 2025 through 2028 and states that the cap is zero for later years. It does not provide an estimate of federal revenue effects or administrative costs.
No publicly available information.
No publicly available information.