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Tax Credits for Charter School Donations

This new act introduces a tax credit for individuals who donate to eligible charter schools. Citizens can deduct 75% of their donation from their taxes, aiming to encourage support for the creation and expansion of these educational institutions. The act also sets rules to ensure donations are used effectively and as intended.
Key points
Allows a 75% tax credit for donations to eligible charter schools, up to 10% of adjusted gross income or $5,000.
Donations must be for the creation or expansion of charter schools managed by qualified organizations.
Recipient organizations must meet specific requirements, including financial audits and timely expenditure of funds.
A nationwide cap of $5 billion in tax credits annually is established, allocated on a first-come, first-served basis.
Charter schools maintain autonomy from governmental control in their operations and educational provision.
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Status: Introduced
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Additional Information
Print number: 119_S_1813
Sponsor: Sen. Scott, Tim [R-SC]
Process start date: 2025-05-20