Bill > HR2798

This bill creates a new tax credit to encourage charitable donations for the creation and expansion of charter schools. Specifically, the bill allows individual taxpayers to claim a tax credit of up to 75% of their charitable contributions to eligible charter school organizations, with a maximum credit of either 10% of the taxpayer's adjusted gross income or $5,000 per year. To qualify, charter school organizations must be non-profit, meet certain performance standards, maintain separate accounting for charter school contributions, and undergo annual independent financial audits. The bill establishes a nationwide volume cap of $5 billion in tax credits annually, with an initial allocation of $10 million per state and the remainder distributed on a first-come, first-served basis. The bill also includes provisions to ensure that donated funds are actually used for charter school creation or expansion, including requirements that organizations spend at least 90% of contributions within five years or risk losing future tax credit eligibility. Additionally, the bill emphasizes the organizational autonomy of charter schools, stipulating that participating organizations should not be considered government entities and should have maximum freedom in serving their students. The tax credit provisions would take effect for taxable years beginning after December 31, 2025.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2798/all-info