Tax Credit for Education Scholarships: Expanding School Choice for Families.
This law introduces a new federal tax credit for individuals who donate to non-profit organizations providing K-12 education scholarships. The goal is to help low-to-middle-income families cover various educational expenses, including tuition at private or religious schools, thereby expanding their educational options. Taxpayers can reduce their federal tax bill while directly supporting educational choice for eligible students.
Key points
Individuals can claim a federal tax credit (up to $5,000 or 10% of AGI) for contributions made to qualified scholarship organizations.
Scholarships are tax-free for recipient families and cover expenses like tuition, books, tutoring, and therapies for students in public, private, religious, or homeschool settings.
Eligibility is limited to students from households earning up to 300% of the area median gross income.
The law explicitly prevents federal or state government control over the operations of participating private or religious schools.
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