Bill > S1810

This bill creates a federal tax credit for charitable donations to nonprofit scholarship organizations that provide educational financial support to elementary and secondary students. The bill allows individual taxpayers to claim a tax credit of up to 10% of their adjusted gross income or $5,000 annually for qualifying contributions to these scholarship organizations. For corporations, the credit is limited to 5% of taxable income. The bill establishes a national volume cap of $10 billion for these credits, with allocations to states based on the number of school-age children and children from low-income families. Scholarship organizations must meet strict requirements, including providing scholarships to at least two students from different schools, prioritizing returning students and those from lower-income households, and undergoing annual financial audits. The scholarships can be used for various educational expenses, including tuition, books, online materials, tutoring, testing fees, and educational therapies. The bill also includes provisions to protect the autonomy of scholarship organizations and private schools, preventing government interference and ensuring that religious schools cannot be discriminated against. The tax credit would become available for taxable years ending after December 31, 2025.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1810/all-info