Bill > S370

This bill establishes a federal tax credit program to encourage individuals and corporations to contribute to scholarships for students through eligible scholarship-granting organizations and workforce training organizations. The bill creates a new tax credit for both individual and corporate taxpayers, allowing them to receive a credit for cash contributions to qualifying organizations. For individuals, the credit is limited to 10 percent of adjusted gross income, while for corporations, it is capped at 5 percent of taxable income. The scholarship organizations must be 501(c)(3) nonprofits that allocate at least 90 percent of contributions to scholarships for elementary, secondary, or postsecondary students, covering educational expenses, career and technical education, vocational training, and apprenticeship programs. A national cap of $10 billion annually is set, with $5 billion allocated for scholarship-granting organizations and $5 billion for workforce training organizations. The bill also establishes a web portal managed by the Secretary of Education to facilitate contributions, provide tax information, and allow states to submit information about their eligible organizations. Importantly, the bill includes provisions to prevent federal control over private or religious education providers and ensures that scholarships are not considered income for tax or federal program eligibility purposes.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/370/all-info