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.
- Sponsor
- Rep. Smith, Adrian [R-NE-3]
- Committees
- Ways and Means Committee (primary)
- Last action
- Sep 16, 2026
Bottom line
The bill increases the tax credit limit for donations to qualified elementary and secondary education scholarship programs for married couples filing jointly, effectively doubling their potential credit.
What it actually does
This bill amends Section 25F(b)(1) of the Internal Revenue Code of 1986 to double the qualified elementary and secondary education scholarships credit limit for married taxpayers who file a joint return. Currently, the credit limit applies per taxpayer, and this amendment would allow joint filers to claim a credit up to 200 percent of the individual limit. The change would apply to taxable years beginning after December 31, 2025.
Proponents argue
Proponents argue that this bill supports school choice by incentivizing donations to scholarship programs that help families afford private education. They contend it provides tax relief to married couples who choose to invest in educational opportunities outside the public system, aligning with principles of parental choice and educational freedom. Supporters believe it encourages philanthropic giving to improve educational access for students.
Opponents contend
Opponents typically argue that increasing tax credits for private school scholarships diverts resources and attention from public education systems, which serve the vast majority of students. They may contend that such credits disproportionately benefit higher-income families who are more likely to utilize private schools or make substantial donations, exacerbating educational inequities. Critics also raise concerns about the potential for reduced federal tax revenue without clear evidence of broad public benefit.
The bill is exceptionally short and can be read and understood in less than a minute, making it highly accessible to any interested reader.
Section 1(a)
Increased Education Scholarship Credit Limit for Joint Filers
This provision amends the Internal Revenue Code to allow married taxpayers filing a joint return to claim a qualified elementary and secondary education scholarships credit up to 200 percent of the amount allowed for individual filers. This effectively doubles the maximum credit limit for couples compared to what two individuals could claim separately under the existing structure. The change takes effect for tax years starting after December 31, 2025.
Supporters argue
Supporters argue that this provision strengthens school choice by providing a greater incentive for married couples to contribute to scholarship funds, thereby expanding educational options for students. They believe it recognizes the financial contributions of families and encourages philanthropic investment in education.
Critics contend
Critics contend that this provision primarily benefits wealthier married couples who are most likely to make large donations to private school scholarship programs, further entrenching educational disparities. They argue it represents a tax break that could reduce federal revenue, potentially at the expense of public education funding.
Tradeoffs
The provision balances the goal of promoting school choice and providing tax incentives for charitable giving against concerns about equity, the potential for regressive tax benefits, and the impact on federal revenue and public school funding.