Education Freedom Scholarships and Opportunity Act This bill allows individual and corporate taxpayers a tax credit for cash contributions to certain scholarship-granting and workforce training organizations. It imposes a cap of $10 billion on the sum of contributions that qualify for a tax credit under this bill. The bill requires the Department of Education, in coordination with the Departments of the Treasury and Labor, to establish, host, and maintain a web portal that (1) lists all eligible scholarship-granting and workforce training organizations; (2) enables contributions to such organizations; (3) provides information about the benefits of this bill; and (4) enables a state to submit and update information about its programs and educational organizations, including information on student eligibility and allowable educational expenses.
Impact
The implementation of SB56 is expected to enhance the financial support available for education, particularly for students attending private schools or engaging in workforce training programs. It aims to promote broader access to educational resources by incentivizing financial contributions. By establishing guidelines for eligible organizations and detailing how states can allocate and use the funds, the bill seeks to encourage both individual and corporate investment in education.
Summary
SB56, titled the 'Education Freedom Scholarships and Opportunity Act', proposes significant amendments to the Internal Revenue Code of 1986 focused on educational funding through tax credits. The bill allows both individual and corporate taxpayers to receive tax credits for contributions made to eligible scholarship-granting and workforce training organizations. A key feature of this bill is a national cap set at $10 billion for the total contributions that qualify for tax credits in a calendar year, equally divided between scholarships and workforce programs.
Contention
Despite the potential benefits, the bill has drawn criticism regarding the implications of diverting funds from public education. Detractors argue that promoting private education through tax credits undermines public school funding and could exacerbate existing educational inequalities. Concerns have also been raised about the lack of accountability for how the funded organizations utilize the contributions and the effectiveness of the programs supported by these taxes. The interplay between states’ educational authority and the federal incentives created through this bill will likely continue to be a contentious issue.
Professional Pell Education Learning Act or the PROPEL Act This bill expands student eligibility for Pell Grants by allowing students to use these grants for enrollment in educational programs that consist of vocational or technical training, flight training, apprenticeship, or other on-job training. In addition, the bill expands institutional eligibility under the Federal Pell Grant program, including by allowing these vocational and training programs to be unaccredited.
Individual income tax: credit; credit for contributions to scholarship-granting organizations and deduction of funds distributed to student opportunity scholarship accounts; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30) & adds secs. 279 & 679. TIE BAR WITH: SB 320'25
Individual income tax: credit; credit for contributions to scholarship-granting organizations and deduction of funds distributed to student opportunity scholarship accounts; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30) & adds secs. 279 & 679. TIE BAR WITH: SB 0710'24
Sunlight for Unaccountable Non-profits (SUN) Act This bill expands the disclosure requirements for certain tax-exempt organizations. This bill requires the annual tax return information for tax-exempt organizations and deferred compensation plans to be made available to the public at no charge and in an open structured data format that is processable by computers, with the information easy to find, access, reuse, and download in bulk. The bill also requires the disclosure of the names and addresses of contributors of $5,000 or more to tax-exempt organizations that participate or intervene in political campaigns on behalf of, or in opposition to, any candidate for public office.
In educational tax credits, further providing for definitions and providing for compliance with Federal tax credit for contributions to scholarship organizations.