Policy Documents

The Education Investment Tax Credit

Adam Schaeffer –
March 5, 2012

This model legislation for education tax credits from the Cato Institute aims to provide maximum freedom for parents, children, schools, and taxpayers to support and attend the schools they choose. It allows businesses and individuals to claim a tax credit for donations made to a private school scholarship-granting organization or for personally-paid private school tuition. In the first year of the program, the total credit claimed may not exceed 70 percent of state per-pupil spending for public education. The program is capped in the first year to $150 million of state spending, increasing 25 percent for each year the program spends 90 percent or more of its cap.