ED and Treasury Release Fact Sheet re: State Participation in Education Voucher Program
A joint fact sheet released on Tuesday by the Departments of Education and Treasury provides information to states interested in implementing the education tax credit enacted through H.R. 1. States must elect to become a “covered state” to participate in the tax credit and designate Scholarship Granting Organizations (SGOs) to administer funds diverted by taxpayers. Under H.R. 1, taxpayers may claim a 100% tax credit for donations of up to $1,700 to an SGO approved in their state. Currently, 15 states have announced their intention to participate in the school voucher program, with additional states expected to opt into the program.
CEC opposed the tax measure both in H.R. 1 and in its previous iteration, the Educational Choice for Children Act, because protections under the Individuals with Disabilities Education Act and other federal civil rights protections are not enforceable at private schools, which often do not serve students with disabilities, and because public funds should be used for public schools. The tax credit goes into effect for the 2027 tax year.