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Tax Credits for Educational Scholarship Donations for Children

This new law introduces a tax credit for individuals who donate to organizations providing educational scholarships for children. These scholarships can cover costs for public, private, or religious schools, as well as other educational expenses. The aim is to support educational choice for lower-income families.
Key points
Allows a tax credit for charitable donations to organizations providing education scholarships for elementary and secondary students.
Scholarships are for students from households with income not exceeding 300% of the area median gross income.
Scholarships can cover tuition, curriculum, books, online materials, tutoring, standardized tests, dual enrollment fees, and educational therapies for students with disabilities.
Scholarship granting organizations must meet specific requirements, including financial audits and prioritizing returning students or siblings.
The tax credit is limited to the greater of 10% of adjusted gross income or $5,000, and is subject to an annual volume cap of $5 billion until 2028.
Scholarship amounts received by students are exempt from gross income.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_817
Sponsor: Rep. Smith, Adrian [R-NE-3]
Process start date: 2025-01-28
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

To amend the Internal Revenue Code of 1986 to allow a credit against tax for charitable donations to nonprofit organizations providing education scholarships to qualified elementary and secondary students.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_817.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-01-28.

What are the main provisions?

Key points include:

  • Allows a tax credit for charitable donations to organizations providing education scholarships for elementary and secondary students.
  • Scholarships are for students from households with income not exceeding 300% of the area median gross income.
  • Scholarships can cover tuition, curriculum, books, online materials, tutoring, standardized tests, dual enrollment fees, and educational therapies for students with disabilities.
  • Scholarship granting organizations must meet specific requirements, including financial audits and prioritizing returning students or siblings.
  • The tax credit is limited to the greater of 10% of adjusted gross income or $5,000, and is subject to an annual volume cap of $5 billion until 2028.
  • Scholarship amounts received by students are exempt from gross income.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Smith, Adrian [R-NE-3].

What is the latest detailed status?

The latest detailed status is: Introduced in House

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

CATEGORIES

Taxes Education Family