Educational Choice for Children Act of 2025

Tax Relief for Donors: Individuals making qualified contributions to scholarship granting organizations can receive a credit against their tax, which is limited to the greater of 10 percent of their adjusted gross income or $5,000 (Section 2(a)(1)).

Educational Support for Students: Eligible students, defined as those from households with income not exceeding 300 percent of the area median gross income, can receive scholarships for expenses including tuition, books, curriculum, and even educational therapies (Section 2(c)(1) and 2(c)(3)).

Tax-Free Scholarship Income: Scholarships provided by these organizations for qualified expenses are not included in the recipient's gross income (Section 3(a)).

Protection of Educational Autonomy: The bill prevents government entities from mandating or controlling the activities of scholarship granting organizations or private/religious schools (Section 4(a)(1) and 4(a)(2)).

Legal Standing for Parents: Parents of eligible students who receive scholarships have the right to intervene in court actions challenging the constitutionality of the Act (Section 4(a)(4)).

Credit Limitations: The tax credit is subject to specific limits, meaning it cannot exceed 10 percent of the taxpayer's adjusted gross income or $5,000, and is also subject to a volume cap allocated by the Secretary (Section 2(b)(1)).

Volume Cap Restrictions: There is a total volume cap of $5,000,000,000 for the years 2025 through 2028, after which the cap is zero (Section 2(g)(1)).

Potential Reduction via State Credits: The amount of the federal credit can be reduced by any amount allowed as a credit on the taxpayer's State tax return for the same qualified contributions (Section 2(b)(3)).

Strict Requirements for Organizations: Scholarship granting organizations must undergo annual financial and compliance audits by an independent certified public accountant and must ensure no officer or board member has a felony conviction (Section 2(d)(1)).