Education Secretary DeVos, Congressional Republicans To Propose $5 Billion Federal Tax Credit Scholarship Program to Support School Choice
“Tax-credit scholarship programs exist in 18 states. Some states have more than one program and each has its own rules, but they are commonly set up for the benefit of low-income children or students with disabilities. Taxpayers can, in some instances, claim part of those donations as charitable contributions on their federal taxes. The difference under this proposal is that the federal tax benefit would be a credit — a dollar-for-dollar reduction of an overall tax bill — versus a deduction that lowers the taxpayer’s overall taxable income.”