Senators Kelly and Hirono Introduce Bill to Repeal Federal Private School Tax Credits

Students currently receiving private school scholarships through these organizations could see their funding dry up if donors lose the tax credit incentive. Additionally, scholarship recipients would need to count scholarship money as taxable income, which could reduce the net value of their awards and create new tax burdens for families.

Some small business owners who donate to scholarship granting organizations as part of their charitable giving strategy would lose this particular tax credit. While this affects only a small subset of business owners who use this specific credit, it would mean higher effective tax bills for those who currently take advantage of it.