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119-s-5322119th CongressWALLET

Federal Tax Credit Scholarship Improvement Act

Sponsored By: Senator Hyde-Smith, Cindy [R-MS]

Introduced

Summary

Sets and indexes a federal tax credit for education scholarships at a clear dollar cap. The bill would set the per-taxpayer credit at $1,700, double that amount for joint filers, and create a process for annual inflation adjustments.

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  • Parents and individual taxpayers who claim qualified elementary and secondary education scholarships would be limited to a $1,700 credit per taxpayer.
  • Married couples filing jointly would have a $3,400 limit.
  • The dollar cap would apply to tax years beginning after December 31, 2025.
  • Inflation adjustments would begin for tax years starting after December 31, 2026, increases would be rounded to the nearest $50, and the IRS must publish the updated amount by November 1 each year for the following taxable year.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Higher K–12 scholarship tax credit

If enacted, this bill would let you claim a federal tax credit for qualified K–12 (elementary and secondary) scholarships up to $1,700 per taxpayer for tax years beginning after December 31, 2025. For married couples filing jointly the credit limit would be twice that amount ($3,400). For tax years beginning after December 31, 2026, the $1,700 amount would be increased each year for inflation using the section 1(f)(3) COLA formula with "calendar year 2025" substituted for 2016; any increase not a multiple of $50 would be rounded to the nearest $50. The Secretary would have to publish the adjusted limit by November 1 each year for the following tax year. You would need a qualified K–12 scholarship to claim the credit.

Sponsors & CoSponsors

Sponsor

Hyde-Smith, Cindy [R-MS]

MS • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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