High-Quality Charter Schools Act

Tax Relief for Donors: Individuals who are citizens or residents of the United States can receive a tax credit equal to 50 percent of their qualified contributions for the creation or expansion of charter schools (Section 25F(a)).

Support for High-Performing Schools: The bill provides a pathway for charter management organizations or schools that are in the highest 10 percent for student performance in their State to become eligible organizations (Section 25F(c)(2)(A)(ii)).

Increased School Opportunities: The credit is specifically intended for the creation or expansion of charter schools (Section 25F(c)(3)).

Freedom of Operation: The act is construed to allow eligible charter school organizations maximum freedom to provide for student needs without governmental control (Section 5(a)(2)).

Contribution Limits: The tax credit is capped at either 10 percent of the taxpayer's adjusted gross income or $5,000, whichever is greater (Section 25F(b)).

Restrictions on Deductions: Individuals cannot take a charitable contribution deduction under section 170 for any contribution that is used to claim this tax credit (Section 25F(d)).

Credit Expiration: If a taxpayer has unused credits, they can only be carried forward for up to five years (Section 25F(e)(2)).

Program Caps: There is a nationwide volume cap of $5,000,000,000 for these tax credits, and credits are distributed on a first-come, first-serve basis (Section 4(a) and 4(b)).

Organizational Penalties: If an eligible charter school organization fails to meet the required expenditure amount—which involves spending the contributions before a specific deadline—future contributions to that organization may no longer be treated as qualified contributions (Section 4969(a) and (b)).