The bill would create federal tax credits for individuals and corporations that donate to nonprofit scholarship organizations. The organizations would award scholarships for eligible elementary and secondary school expenses, including tuition, books, tutoring, educational technology, some therapies, transportation, and home-school expenses. The bill would set rules for scholarship organizations, including income-based priorities, audits, and limits on administrative spending. It would also exempt these scholarships from recipients’ gross income and limit government control over scholarship organizations and private or religious schools.
Eligible individual taxpayers could claim a credit for qualifying donations, subject to limits and a national cap. Corporations could also claim a credit, subject to a separate limit. Students who qualify to enroll in public elementary or secondary school could receive scholarships from participating organizations. The bill would apply to relevant tax years or scholarship amounts after December 31, 2025.
Scholarships could pay for the education expenses listed in the bill. Individual credits would be limited to the greater of $5,000 or 10% of adjusted gross income, with other limits. Corporate credits would be limited to 5% of taxable income. The bill sets a $10 billion national cap for 2026 and later years, with increases possible under specified conditions. No publicly available information on an estimate of the bill’s revenue effects.
No publicly available information.
No publicly available information.