Bill > S292

This bill establishes a new federal tax credit for charitable donations to scholarship granting organizations that provide educational scholarships to eligible students from low and moderate-income households. Individuals can claim a tax credit of up to 10% of their adjusted gross income or $5,000 per year for donations to these organizations, while corporations can claim a credit of up to 5% of their taxable income. The scholarships can be used for various educational expenses including tuition, books, online materials, tutoring, testing fees, and educational therapies for students with disabilities, and can be used at public or private schools, including religious schools. Scholarship granting organizations must meet specific requirements, such as providing scholarships to students from different schools, not earmarking contributions for specific students, and obtaining independent financial audits. The bill includes a nationwide volume cap of $10 billion annually for these tax credits, with 10% of the cap divided evenly among states. The scholarships will be tax-exempt for recipients, and the bill explicitly prohibits government control over scholarship organizations and private schools, emphasizing parental choice and institutional autonomy in educational funding.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/292/all-info