Thursday, January 15, 2026

How Ought to The New Federal Scholarship Tax Credit score Be Regulated?


The One Massive Stunning Invoice Act that handed in July features a landmark provision providing dollar-for-dollar tax credit to particular person taxpayers who donate to Scholarship Granting Organizations (SGOs)—representing the primary nationwide school-choice initiative. But the availability that emerged from congressional sausage-making could be very completely different from what its drafters supposed. Notably, it requires states to choose in to taking part within the initiative, relatively than mandating it from coast to coast. The ultimate invoice additionally not explicitly features a strict prohibition on states imposing their very own necessities on SGOs if these states select to choose in.

Coverage wonks anticipate the Division of the Treasury to difficulty rules prematurely of the initiative’s launch in January 2027. We requested 5 college alternative proponents to advise the treasury secretary on what these rules ought to say.

Taking part within the dialogue are Jim Blew, cofounder of the Protection of Freedom Institute for Coverage Research; Jorge Elorza, CEO of Democrats for Schooling Reform; Robert Enlow, president and CEO of EdChoice; Robert Luebke, director of the Middle for Efficient Schooling on the John Locke Basis; and Peter Murphy, senior adviser to the Spend money on Schooling Coalition.

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