Bill > HR817

This bill creates a federal tax credit for individuals who make charitable donations to scholarship granting organizations that provide financial support to K-12 students from households with incomes up to 300% of the area median income. The tax credit is limited to the lesser of 10% of the taxpayer's adjusted gross income or $5,000 per year, and can be carried forward for up to five years. Scholarship granting organizations must meet specific requirements, including providing scholarships to at least two students from different schools, prioritizing returning and sibling students, and maintaining separate accounts for contributions. Qualified education expenses are broadly defined to include tuition, curriculum materials, books, online learning, tutoring, testing fees, educational therapies, and homeschool-related costs. The bill also includes provisions to ensure organizational and parental autonomy, prohibiting government control over scholarship organizations and private schools. Additionally, the bill makes scholarship funds tax-exempt for recipients and establishes a national volume cap of $5 billion annually for these tax credits from 2025 to 2028. The goal is to provide more educational choices for families by supporting alternative education options beyond traditional public schools.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/817/all-info