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WATCH: Understand Tax Credit Scholarships in 60 Seconds or Less

February 5, 2017

Talking Points

New Video: Understanding tax credit scholarships — in 60 seconds or less

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See more coverage of School Choice Week 2017.
In our continuing series of explainer videos about school choice options for families (watch our debrief on school vouchers), today we focus on tax credit scholarships that are now available to students and donors in nearly two dozen states.
In states where tax credits are granted to donors, the credit can range from $250 to $1,000; in states that prioritize tax deductions for families, that range can increase from $1,000 to $10,000 per child.
More information about the two types of programs:
Tax Credits for Donations — Some states give credits to individuals or businesses that donate to a scholarship-granting organization. This SGO then uses the donations to award private school scholarships to qualifying students. (Some states reserve scholarships for low- or middle-income students, students from low-achieving districts or students who attended a public school the previous year.)
Tax Credits or Deductions for Families — Other states give families private school tax credits or let them deduct tuition (or other expenses).