New Federal Tax Credit Could Expand Colorado School Choice Options

By Brenda Dickhoner | Commentary, The Colorado Sun

Colorado lawmakers have been working to close a budget gap of more than $1.5 billion, and programs that students and families rely on are under pressure. At the same time, a new federal tax credit gives Colorado a chance to bring substantial philanthropic dollars into education without drawing from the state’s general fund.

The Education Freedom Tax Credit allows taxpayers to receive a federal tax credit of up to $1,700 annually for charitable contributions to scholarship-granting organizations that support K-12 students. Essentially, the program encourages private giving to step in where public funding is falling short, at no extra cost to taxpayers.

The tax credit’s flexibility makes it especially powerful. Nonprofits can provide scholarships of any amount for a range of education-related expenses beyond tuition. One student may receive $1,000 for after-school tutoring, while another could receive $5,000 for special education services that supplement what they receive at their public school. Other eligible expenses include enrichment programs, transportation, advanced coursework fees, and career and technical education, to name just a few.

These wraparound services for public school students are often the first to go when budgets tighten, even though they’re the very programs that help students catch up, stay engaged and think about what comes next. Just this year, the Joint Budget Committee cut funding for before- and after-school programs serving thousands of students across the state and reduced support for a math and science tutoring initiative aimed at closing gaps that still persist from the pandemic.

READ THE FULL ARTICLE AT THE COLORADO SUN

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