S. 370 would create federal tax credits for individuals and domestic corporations that donate to eligible scholarship-granting or workforce training organizations. The scholarships could support elementary and secondary education, career and technical education, vocational training, apprenticeships, and some certificates or credentials. States would identify eligible organizations, and the Education Department would run a web portal for information, contributions, and credit pre-approval. The bill sets a combined annual limit of $10 billion in qualifying contributions, split evenly between school scholarships and workforce training. The bill was introduced in the Senate and referred to the Committee on Finance.
An individual who chooses to donate cash to an eligible organization could claim a credit of up to 10% of adjusted gross income, limited by federal tax liability. A domestic corporation could claim a credit of up to 5% of taxable income. Credits would require an election and pre-approval, could not be sold or transferred, and unused amounts could generally be carried forward for up to five years. Eligible students could receive scholarships for listed education or training expenses. The bill says scholarships would not count as income for federal taxes or federal program eligibility.
The bill authorizes and appropriates sums as necessary to administer the program, but gives no total cost estimate. It caps qualifying contributions at $10 billion per calendar year, with $5 billion allocated to school scholarship organizations and $5 billion to workforce training organizations.
No publicly available information.
No publicly available information.