A US House of Representatives taskforce headed by Rep. Bob Schaffer (R. - CO) is currently in the process of designing a bill that would provide a tax credit for individuals and/or corporations that make a charitable contribution to a public or private elementary or secondary school.

While the limits and calculations used to determine the credit have not yet been finalized, taskforce members are also considering allowing the tax credits to be taken for contributions to an Educational Investment Organization (EIO). An EIO would likely be defined as a nonprofit organization that awards grants to elementary or secondary school students for expenses such as books, fees, supplies, technology, tuition and tutoring.

Different than Previous "School Choice" Measures

The legislation in development will differ from school voucher and prior tuition-only tax credit legislation in several key respects. For one, the tax credit would apply to contributions made to public as well as private schools. Think how much easier it would be for a public school to raise funds in support of field trips, team uniforms, band instruments or science equipment if donors were given the incentive of a tax write-off. With 90% of the nation's children enrolled in public schools, such a measure could be expected to grow—not drain—resources for public education.

Secondly, under terms of the contemplated legislation, groups of public schools, or districts, could establish EIOs designed to receive and distribute funds supporting programming such as after-school tutoring, technology acquisition, or SAT prep programs for low-income students. EIO's serving groups of private schools could designate contributions received for either tuition-assistance or for any of the qualifying expenses associated with the Coverdell education savings accounts legislation currently in effect.

In the Public Interest

The provision of tax credits follows the same principle governing current tax deductions for contributions to schools or charitable organizations. Since very few people question the value of the government providing a financial incentive to individuals who support such organizations, it's hard to imagine widespread principled opposition to the provision of tax credits as incentives used to promote the public welfare. Credits, after all, would provide an even stronger inducement for contributions.

CAPSO's Position

Once an actual bill is crafted, CAPSO's leadership will study it and provide an opinion. Stay tuned to the CAPSO website for updates regarding this and other important legislative developments that impact California's private schools.