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Congress·In Committee·S. 1813

Sen. Scott Introduces the High-Quality Charter Schools Act to Create $5 Billion in Tax Credits

High-Quality Charter Schools Act

1 day ago·View on Congress.gov

Legislative Progress

Senate
House
President
Law

Key Points

  • The bill creates a new federal tax credit equal to 75% of charitable donations made to eligible charter school organizations. This is a dollar-for-dollar credit against taxes owed, not just a deduction, making it a much stronger incentive for donors.

    From policy text

    “there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 75 percent of the amount of qualified contributions made by the taxpayer during the taxable year.”
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  • Only donations to "high-quality" charter organizations qualify. Schools must either rank in the top 10% for student performance in their state or have received specific federal expansion grants, and they must undergo annual independent audits.

    From policy text

    “has been selected by a State for eligibility under this section based on a determination by the State that the entity is in the highest 10 percent of charter management organizations (as so defined) or charter schools, as the case may be, for student performance in the State”
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  • Individual credits are capped at the greater of $5,000 or 10% of adjusted gross income. Unused credits can be carried forward for up to five years, giving high-income donors substantial flexibility.

    From policy text

    “The credit allowed under subsection (a) in any taxable year shall not exceed an amount equal to the greater of-- ``(1) 10 percent of the adjusted gross income of the taxpayer for the taxable year, or ``(2) $5,000.”
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  • The program has a nationwide cap of $5 billion in tax credits per year starting in 2026. Each state gets at least $10 million, and the rest is available first-come, first-served. If 90% of credits are claimed, the cap automatically increases by 5%.

    From policy text

    “the volume cap applicable with respect to such section shall be $5,000,000,000 of tax credits for taxable years beginning in calendar year 2026 and each subsequent year thereafter”
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  • Charter schools participating in this program are explicitly protected from being treated as government entities. The bill says they should have maximum freedom to serve students without government control.

    From policy text

    “An eligible charter school organization shall not, by virtue of participation under any provision of this Act or any amendment made by this Act, be regarded as acting on behalf of any governmental entity.”
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TaxesEducation

Impact Analysis

Personal Impact

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones3 actions
Mar 19, 2026Senate

Committee on Health, Education, Labor, and Pensions. Hearings held.

May 20, 2025Senate

Read twice and referred to the Committee on Finance.

May 20, 2025

Introduced in Senate

What Happens Next

Projected impacts based on AI analysis

2026

Treasury Department must build a real-time tracking system for the $5 billion credit cap

Donors need to know if credits are still available before making contributions. The IRS would need to create an entirely new system to track credits in real time on a first-come, first-served basis.

Related Bills

1 bill
H.R. 2798Related bill

High-Quality Charter Schools Act

Apr 9 — Referred to the House Committee on Ways and Means.

Source Information

Document Type

Congressional Bill

Official Title

High-Quality Charter Schools Act

Bill NumberS 1813
Congress119th Congress
ChamberSenate
Latest ActionCommittee on Health, Education, Labor, and Pensions. Hearings held.

Sponsor

Cosponsors

(1)
R: 1

Analysis generated by AI. Always verify with official sources.