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119th Congress Taxation

H.R. 817: Educational Choice for Children Act of 2025

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.

Introduced

  1. Introduced (completed)Jan 28, 2025
  2. Passed House (not reached)
  3. Passed Senate (not reached)
  4. To the President (not reached)
  5. Became law (not reached)

Summary

Introduced in House, Jan 28, 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.

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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
  • excludes from gross income scholarships received by an individual from a scholarship granting organization.

Finally, the bill prohibits federal, state, and local government entities, officers, and employees from imposing requirements that prevent the use of scholarship funds for private or religious elementary or secondary education expenses or discouraging the use of scholarship funds at such education institutions.

Written by the Congressional Research Service, Library of Congress.

Roll calls

0 votes on this bill

No roll call votes have been held on this bill.

Amendments

0 offered

No amendments were offered to this bill.

Cosponsors

27

Who scored on this bill

6 points earned
  1. 1Adrian Smith R-NE SponsorReached a cosponsor milestone, introduced2 events+6
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Introductions and cosponsorships count toward weekly caps and show no points.

Other bills by Adrian Smith

History

  1. Jan 28, 2025Introduced in the House by Adrian Smith.
Show the full action history (2 actions)
  1. Jan 28, 2025Introduced in House
  2. Jan 28, 2025Referred 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.