Bill > HR3519

This bill establishes a federal tax credit for charitable donations to nonprofit scholarship organizations that provide educational support to elementary and secondary students. The bill creates a tax credit for both individual and corporate taxpayers, allowing individuals to claim a credit of up to 10% of their adjusted gross income or $5,000, and corporations to claim a credit of up to 5% of their taxable income. The scholarship organizations must meet specific requirements, including providing scholarships to multiple students from different schools, prioritizing returning students and those from lower-income households, and maintaining financial transparency through independent audits. The bill sets a national volume cap of $10 billion annually for these tax credits, with allocations to states based on the number of school-age children and children living below the poverty line. Importantly, the bill emphasizes organizational and parental autonomy, prohibiting governmental control over scholarship organizations and schools, and protecting the rights of parents to use scholarships at private and religious schools. The tax credits and scholarship provisions would take effect for taxable years ending after December 31, 2025, and scholarships received would be exempt from gross income taxation.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/3519/all-info