federal scholarship tax credit program

A new federal scholarship tax credit program allows taxpayers to direct $1,700 annually to fund scholarships for public school students. Edunomics Lab proposes districts offer a service bundle (e.g., field trips, tutoring) funded by scholarships from withheld taxes, with employers facilitating payroll deductions to support participation. States must opt in by December 31 and identify qualified scholarship-granting organizations (SGOs) to deliver funds.

Massachusetts is considering not opting into a federal scholarship tax credit program that could provide $2.2 billion annually for educational supports, with critics labeling it a voucher program but advocates arguing it benefits public school students. Refusing the program would mean losing funds to other states or the Treasury.