Tell the IRS: Don’t Bury School Choice in Red Tape

Congress created a new federal tax credit to help families afford K–12 education through scholarship programs — expanding opportunity and giving parents more control over where their children learn. But now the IRS is writing the rules, and unnecessary bureaucracy could make the program unworkable.

The IRS should keep the process simple, flexible, and true to Congress’s intent — so states, scholarship organizations, and families can participate without being trapped in red tape.

Dear Department of the Treasury, Internal Revenue Service

I appreciate the opportunity to comment on the IRS’s implementation of the new federal tax credit for donations to Scholarship Granting Organizations (SGOs). I submit these comments as a member of the Club for Growth, and I write in strong support of the comments submitted by the Club for Growth regarding this rulemaking.

Congress created this credit to expand educational opportunity and empower parents to choose the best learning environment for their children. For the program to succeed, the IRS should implement the statute in a manner that is simple, accessible, and fully consistent with congressional intent.

Specifically, I urge the IRS to:

* Make it easy for Governors to opt states into the program and provide continuity once a state has opted in. States should not be able to opt out on a year-to-year basis, as families and students will rely on these scholarships for multiple years. Allowing abrupt withdrawal would be harmful and disruptive.

* Clarify that the $1,700 tax credit applies per individual, not per tax return, so that married couples filing jointly may each claim the full credit, for a total of $3,400. The regulations should avoid creating a marriage penalty and should allow taxpayers to contribute and claim the credit directly through their Form 1040.

* Ensure that certification and reporting requirements are uniform, clear, and easy to comply with, so that states and scholarship organizations of all sizes are encouraged to participate rather than deterred by excessive administrative burden.

* Maximize flexibility for multi-state scholarship programs by allowing successful national and regional SGOs to operate across state lines without requiring donors to designate a specific state for their contribution.

* Protect family privacy by minimizing the collection of sensitive income or demographic data beyond what is strictly necessary to administer the program.

Families and donors should be able to participate easily and confidently. Excessive bureaucracy would only reduce participation and ultimately limit the number of scholarships available to students who need them most.

Thank you for considering these comments and for your work to ensure that this program fulfills Congress’s goal of expanding educational opportunity and school choice for American families.

Sincerely,
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