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.
The source supplies the latest action, but no lifecycle stage.
Latest action (28 Jan 2025): Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
What this bill does
This bill, titled the "Educational Choice for Children Act of 2025," proposes creating a new tax credit for individuals who donate cash or stock to nonprofit organizations that provide scholarships for elementary and secondary school expenses. These scholarships are for eligible students, defined as those whose household income is no more than 300% of the area median gross income and who are eligible to attend public school. The credit would cover expenses like tuition, books, and educational therapies.
The tax credit would be limited to the greater of $5,000 or 10% of an individual's adjusted gross income. There is an annual cap of $5 billion on the total amount of these tax credits available nationwide from 2025 through
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
Educational Choice for Children Act of 2025
This bill establishes a nonrefundable tax credit for contributions (cash or stock) made by an individual to a tax-exempt organization that provides scholarships for qualified elementary and secondary school expenses to eligible students (scholarship granting organization), subject to limitations.
Under the bill, the tax credit is limited to the greater of $5,000 or 10% of adjusted gross income.
Further, the bill establishes a $5 billion annual volume cap (for 2025-2028) for the tax credit (which may be increased under certain circumstances). The volume cap is allocated by the Department of the Treasury for the tax credit on a first-come, first-serve basis (based on the contribution date). However, under the bill, 10% of the volume cap must be divided evenly among states for allocation to individuals residing in those states.
The bill allows any portion of the tax credit that exceeds the individual’s tax liability (less certain other tax credits) to be carried forward for up to five tax years.
The bill also
• establishes specific requirements for a scholarship granting organization,
• requires a scholarship granting organization to distribute all contributions within a specific timeframe (exceptions apply), and
Timeline
28 Jan 2025
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Common questions
- What does H.R. 817 do?
- This bill, titled the "Educational Choice for Children Act of 2025," proposes creating a new tax credit for individuals who donate cash or stock to nonprofit organizations that provide scholarships for elementary and secondary school expenses. These scholarships are for eligible students, defined as those whose household income is no more than 300% of the area median gross income and who are eligible to attend public school. The credit would cover expenses like tuition, books, and educational therapies. The tax credit would be limited to the greater of $5,000 or 10% of an individual's adjusted gross income. There is an annual cap of $5 billion on the total amount of these tax credits available nationwide from 2025 through
- Has H.R. 817 become law?
- The source does not supply a confirmed lifecycle stage for H.R. 817. Check the latest action and official source below.
- Who sponsored H.R. 817?
- H.R. 817 was sponsored by Rep. Smith, Adrian [R-NE-3] (R-NE), with 27 cosponsors.
- What's the latest action on H.R. 817?
- Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (28 Jan 2025).
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More bills from Rep. Smith, Adrian [R-NE-3]
Fair Play Enforcement Act
Strengthening Innovation in Medicare and Medicaid Act
To amend the Internal Revenue Code of 1986 to eliminate the State opt-in requirement for the qualified elementary and secondary education scholarship credit.
To amend the Internal Revenue Code of 1986 to increase the qualified elementary and secondary education scholarships credit limit for married taxpayers filing a joint return.
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