The Education Tax Credit will increase investment in education and scholarships by encouraging more charitable donations – donations that benefit all students regardless of what type of school they attend.

The Education Tax Credit which allows for $300 million in education tax credits annually:

  • Encourages charitable donations to public schools for enhanced educational programming (like pre-kindergarten, visual arts, music, tutoring, and college and career readiness, among others);
  • Increases funds for scholarships to low- and middle-income students to attend a private school or public school outside of their district; and,
  • Increases funds for classrooms by reimbursing teachers for a share of their out-of-pocket expenses for class supplies.

How the Tax Credits Work

Individuals and businesses can receive a tax credit for a share of their donations made to public education and approved nonprofit organizations that provide educational programming or award scholarships to private and out-of-district public schools.

Increase Funding for Public School Programs

Public schools, school districts, and nonprofit community-based organizations providing educational programming for public school students will benefit from increased revenue generated for educational programs, including pre-kindergarten, visual arts, music, tutoring, and college and career readiness, among others. Students will benefit from the enhanced and new educational programming that the funds would support.

Expand Education Scholarships

Expanding scholarships is the most effective and realistic approach to provide equal educational access to greater numbers of children from low-income and working-class families. The Education Tax Credit will expand access to religious and private schools that many families rely on as alternatives. By expanding the availability of PK-12 scholarships, more children will have more quality educational options than are available currently.

Fund Instructional Materials and Supplies

This Education Tax Credit will reimburse teachers who pay out of their own pockets to buy supplies for their classrooms. Public school teachers will be eligible for $200 to support the purchase of instructional materials and supplies for use in classrooms. This credit will benefit educators and students throughout the state.