To amend the Internal Revenue Code of 1986 to allow a credit against tax for charitable donations to nonprofit organizations providing education scholarships to qualified elementary and secondary students.
Summary
What This Bill Does
The bill creates new individual tax credit (IRC 25F) for contributions to scholarship granting organizations that provide K-12 education scholarships to eligible low/middle-income students, creates IRC Section 25F establishing individual tax credit for qualified contributions to scholarship granting organizations, and creates IRC Section 45BB establishing corporate tax credit for contributions to scholarship granting organizations. It relies on exemptions, tax credits, compliance mandates, and appropriations. The main policy areas are Education.
Who Benefits and How
Private and religious K-12 schools could gain revenue opportunities, Scholarship-receiving families could see lower costs, and Low- and middle-income families (up to 300% AMI) could see lower costs.
Who Bears the Burden and How
Federal tax revenue could lose revenue opportunities, Scholarship granting organizations would take on compliance duties, and IRS / Department of the Treasury would take on compliance duties.
Key Provisions
- Creates new individual tax credit (IRC 25F) for contributions to scholarship granting organizations that provide K-12 education scholarships to eligible low/middle-income students.
- Creates IRC Section 25F establishing individual tax credit for qualified contributions to scholarship granting organizations.
- Creates IRC Section 45BB establishing corporate tax credit for contributions to scholarship granting organizations.
- Requires IRC Section 4969 establishing enforcement mechanism for scholarship granting organizations that fail to distribute receipts.
- Establishes $10 billion annual volume cap for education scholarship tax credits starting calendar year 2026.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
The bill creates new individual tax credit (IRC 25F) for contributions to scholarship granting organizations that provide K-12 education scholarships to eligible low/middle-income students, creates IRC Section 25F establishing individual tax credit for qualified contributions to scholarship granting organizations, and creates IRC Section 45BB establishing corporate tax credit for contributions to scholarship granting organizations.
Key Policy Areas
Education
Primary Purpose
The bill creates new individual tax credit (IRC 25F) for contributions to scholarship granting organizations that provide K-12 education scholarships to eligible low/middle-income students, creates IRC Section 25F establishing individual tax credit for qualified contributions to scholarship granting organizations, and creates IRC Section 45BB establishing corporate tax credit for contributions to scholarship granting organizations.
Policy Domains
Educational Choice for Children Act
Identified Gains
- Private and religious K-12 schools
- Scholarship-receiving families
- Low- and middle-income families (up to 300% AMI)
- High-income individual donors
- Families receiving K-12 scholarships
Identified Costs
- Federal tax revenue
- Scholarship granting organizations
- IRS / Department of the Treasury
- Public school systems
Sponsors
Legislative Progress
IntroducedMr. Cassidy (for himself, Mr. Scott of South Carolina, Mr. …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Federal tax revenue, IRS / Department of the Treasury
Private and religious K-12 schools, Public school systems
Positive-direction: Private and religious K-12 schools
Negative-direction: Public school systems
Eligible scholarship recipients, Families receiving K-12 scholarships, Low- and middle-income families (up to 300% AMI)
Scholarship granting organizations
Scholarship granting organizations faces effects in multiple directions
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury (IRS)
- "scholarship_granting_organization"
- → 501(c)(3) nonprofit providing K-12 scholarships to eligible students
Key Definitions
Terms defined in this bill
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology