Tax-credit scholarships, usually operated on the state level, are a form of school choice that allows individuals or businesses to receive full or partial credits when they contribute to a nonprofit that provides private school scholarships. The tax code change is permanent because there is no expiration date in the law. “Parents should decide where their kids go to school," said Republican Senator Bill Cassidy. "This bill helps them do that." Cassidy authored the "Educational Choice for Children Act" that was included within the “One Big, Beautiful Bill." Under the new legislation, any taxpayer who donates up to $1,700 annually to a scholarship-granting organization is eligible for a federal income tax credit for their full contribution, or an equal amount in a reduction of taxes owed. According to the Institute on Taxation and Economic Policy, there is no other charitable giving structure that allows this type of dollar-for-dollar tax incentive. This bill relies on state governments to designate which scholarship groups can receive funds. The American Federation for Children has been advocating for school choice legislation for 10 years, according to Fox News.Giving credits where credits are due...
Thursday, July 10, 2025
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