Bill · S. 5322· Senate(119-S-5322)
Federal Tax Credit Scholarship Improvement Act
- Introduced
- 8/6/2026
- Last activity
- 8/6/2026 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Cindy Hyde-Smith
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, titled the "Federal Tax Credit Scholarship Improvement Act," aims to amend the Internal Revenue Code of 1986. It specifically seeks to modify the credit amount for qualified elementary and secondary education scholarships. The legislation establishes a $1,700 dollar limitation for the credit. For joint returns, this amount is doubled. Additionally, the bill introduces an inflation adjustment process for taxable years beginning after December 31, 2026.
Yes· 3 of 6
Does this cut taxes for middle-income families?+3
The bill provides a tax credit for educational scholarships which can reduce the overall tax burden for qualifying families.
Does this make it easier to use public money at a school other than the local one?+3
The bill provides tax credits for qualified elementary and secondary education scholarships, which supports school choice.
Would children be better off under this?+2
The tax credit for elementary and secondary scholarships can help families afford education for their children.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Inflation Adjustments: The bill includes a provision to increase the $1,700 amount based on a cost-of-living adjustment for taxable years beginning after December 31, 2026, which helps the credit keep up with economic changes (Section 2(a)(B)(i)).
-
Increased Support for Joint Filers: Taxpayers filing a joint return are eligible for twice the standard credit amount, providing more financial support for those households (Section 2(a)(A)).
Potential Negative Impacts for People
- Specific Dollar Limitation: The credit is capped at an applicable amount of $1,700, which sets a specific limit on the amount of the credit allowed to any taxpayer (Section 2(a)(B)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Children+2Good For Middle Class Households+2Good For Students+2Good For Low Income Households+1
- Economy And Finance
- Reduces Middle Class Taxes+3
- Education And Technology
- Improves School Choice+3
- 8/6/2026
- Read twice and referred to the Committee on Finance.
- Introduced in Senate