United States 119th Congress Status: In Committee 28 R cosponsors

HR 817 — To amend the Internal Revenue Code of 1986 to allow a credit against tax for charitable donations to nonprofit organizations providing education scholarships to qualified elementary and secondary students.

Last action — Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the House. Introduced January 28, 2025. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the House.

Odds of enactment

Low chance

Based on the sponsor, cosponsors, and committee posture, this bill has a low chance of becoming law.

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A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Stalled 26% · moderate confidence

  • In Committee

    Current position in the legislative process.

  • 28 sponsors

    1 primary, 27 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (28 R).

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Summary

Educational Choice for Children Act of 2025This bill establishes a nonrefundable tax credit for contributions (cash or stock) made by an individual to a tax-exempt organization that provides scholarships for qualified elementary and secondary school expenses to eligible students (scholarship granting organization), subject to limitations.Under the bill, the tax credit is limited to the greater of $5,000 or 10% of adjusted gross income.Further, the bill establishes a $5 billion annual volume cap (for 2025-2028) for the tax credit (which may be increased under certain circumstances). The volume cap is allocated by the Department of the Treasury for the tax credit on a first-come, first-serve basis (based on the contribution date). However, under the bill, 10% of the volume cap must be divided evenly among states for allocation to individuals residing in those states.The bill allows any portion of the tax credit that exceeds the individual’s tax liability (less certain other tax credits) to be carried forward for up to five tax years.The bill alsoestablishes specific requirements for a scholarship granting organization,requires a scholarship granting organization to distribute all contributions within a specific timeframe (exceptions apply), andexcludes from gross income scholarships received by an individual from a scholarship granting organization.Finally, the bill prohibits federal, state, and local government entities, officers, and employees from imposing requirements that prevent the use of scholarship funds for private or religious elementary or secondary education expenses or discouraging the use of scholarship funds at such education institutions.

Bill Text

How this bill changes current law

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AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill introduces a new tax credit for individuals making charitable donations to scholarship granting organizations for educational purposes.

  • Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986

    SEC. 25F. QUALIFIED ELEMENTARY AND SECONDARY EDUCATION SCHOLARSHIPS. (a) Allowance of Credit.--In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the aggregate amount of qualified contributions made by the taxpayer during the taxable year.

    This adds a new section providing a tax credit for donations to educational scholarship organizations.

  • Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986

    (b) Limitations.--(1) In general.--The credit allowed under subsection (a) to any taxpayer for any taxable year shall not exceed an amount equal to the greater of-- (A) 10 percent of the adjusted gross income of the taxpayer for the taxable year, or (B) $5,000.

    This establishes limits on the tax credit based on income or a fixed dollar amount.

  • Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986

    (c) Definitions.--For purposes of this section-- (1) Eligible student.--The term 'eligible student' means an individual who-- (A) is a member of a household with an income which is not greater than 300 percent of the area median gross income (as such term is used in section 42), and (B) is eligible to enroll in a public elementary or secondary school.

    This defines 'eligible student' for the purposes of the scholarship tax credit.

  • Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986

    (2) Qualified contribution.--The term 'qualified contribution' means a charitable contribution (as defined by section 170(c)) to a scholarship granting organization in the form of cash or marketable securities.

    This specifies what constitutes a 'qualified contribution' for the tax credit.

  • Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986

    (3) Scholarship granting organization.--The term 'scholarship granting organization' means any organization-- (A) which-- (i) is described in section 501(c)(3) and exempt from tax under section 501(a), and (ii) is not a private foundation.

    This defines 'scholarship granting organization', detailing the requirements needed to qualify.

  • Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986

    (d) Denial of Double Benefit.--Any qualified contribution for which a credit is allowed under this section shall not be taken into account as a charitable contribution for purposes of section 170.

    This prevents taxpayers from claiming a double benefit for the same contribution.

  • Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986

    (f) Carryforward of Unused Credit.--(1) In general.--If the credit allowable under subsection (a) for any taxable year exceeds the limitation imposed by section 26(a) for such taxable year, such excess shall be carried to the succeeding taxable year.

    This allows taxpayers to carry forward unused credits to future years.

  • Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986

    (g) Volume Cap.--(1) In general.--The volume cap applicable under this section shall be $5,000,000,000 for each of calendar years 2025 through 2028, and zero for calendar years thereafter.

    This sets a cap on the total amount of credits that can be allocated annually.

Action History

  1. Introduced in House

  2. Introduced in House

  3. Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

  4. Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Sponsors

Sponsorship breakdown

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1 sponsors · 27 co-sponsors · 519 not signed on

Sponsors (1)

Co-sponsors (27)

Not signed on (519)

519 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation education
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does HR 817 do?
Educational Choice for Children Act of 2025This bill establishes a nonrefundable tax credit for contributions (cash or stock) made by an individual to a tax-exempt organization that provides scholarships for qualified elementary and secondary school expenses to eligible students (scholarship granting organization), subject to limitations.Under the bill, the tax credit is limited to the greater of $5,000 or 10% of adjusted gross income.Further, the bill establishes a $5 billion annual volume cap (for 2025-2028) for the tax credit (which may be increased under certain circumstances). The volume cap is allocated by the Department of the Treasury for the tax credit on a first-come, first-serve basis (based on the contribution date). However, under the bill, 10% of the volume cap must be divided evenly among states for allocation to individuals residing in those states.The bill allows any portion of the tax credit that exceeds the individual’s tax liability (less certain other tax credits) to be carried forward for up to five tax years.The bill alsoestablishes specific requirements for a scholarship granting organization,requires a scholarship granting organization to distribute all contributions within a specific timeframe (exceptions apply), andexcludes from gross income scholarships received by an individual from a scholarship granting organization.Finally, the bill prohibits federal, state, and local government entities, officers, and employees from imposing requirements that prevent the use of scholarship funds for private or religious elementary or secondary education expenses or discouraging the use of scholarship funds at such education institutions.
Who sponsors HR 817?
HR 817 is sponsored by Smith, Adrian (Republican), Owens, Burgess (Republican), Walberg, Tim (Republican), Kelly, Mike (Republican), Yakym, Rudy (Republican), LaHood, Darin (Republican), Letlow, Julia (Republican), Miller-Meeks, Mariannette (Republican), Donalds, Byron (Republican), Tenney, Claudia (Republican), Feenstra, Randy (Republican), Moore, Blake D. (Republican), Hern, Kevin (Republican), Malliotakis, Nicole (Republican), Lawler, Michael (Republican), Fong, Vince (Republican), Carey, Mike (Republican), Hudson, Richard (Republican), Salazar, Maria Elvira (Republican), Franklin, Scott (Republican), Crenshaw, Dan (Republican), Wilson, Joe (Republican), Rose, John W. (Republican), Weber, Randy K. Sr. (Republican), Ciscomani, Juan (Republican), Moolenaar, John R. (Republican), Allen, Rick W. (Republican), and Dunn, Neal P. (Republican).
What is the current status of HR 817?
This bill is in committee in the House. Introduced January 28, 2025. It must pass committee before a floor vote.
Where can I track HR 817?
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