Working Families Tax Cuts Deliver Expanded Educational Opportunity

Working Families Tax Cuts Deliver Expanded Educational Opportunity

Washington, D.C.-The Working Families Tax Cuts delivered one of the largest expansions of education freedom in history, providing new tax benefits to families that will help with educational opportunity and affordability. Through the newly created Education Freedom Tax Credit, taxpayers are eligible for a credit up to $1,700 for qualified contributions made to organizations that fund scholarships for low- and middle-income students, helping families afford costs associated with elementary and secondary education. By incentivizing these contributions, the new tax credit will make school choice programs more accessible, giving families more schooling options.

"Education is best overseen by the people closest to every student, and the Education Freedom Tax Credit makes school choice more accessible to those who understand a child's needs best-their parents," said U.S. Senate Finance Chairman Mike Crapo (R-Idaho). "Through this new provision and others, the Working Families Tax Cuts are helping ensure every Idaho student has the educational foundation necessary to succeed."

The Department of the Treasury recently previewed forthcoming guidance to prepare states, taxpayers and other stakeholders for the launch of the Education Freedom Tax Credit in January 2027. You can read Treasury's announcement HERE. In its Education Freedom Tax Credit fact sheet (located HERE), Treasury notes that scholarships can be used to cover education-related services at private or public schools, including tuition, fees, academic tutoring and classroom supplies

Other key education wins in the Working Families Tax Cuts:

• Expanded 529 plan eligibility to include expenses for vocational schools and apprenticeship programs
• Doubled the amount families can withdraw annually from 529 plans to pay for K-12 education
• Made permanent a tax exclusion for employers that help repay their employees' student loans

What they are saying:

"Every family deserves access to the education that's right for their child, and every governor who has pledged to act once the rules were clear must now do exactly that. The time to opt in is now. AFC will continue to stand with parents seeking this life-changing opportunity." - American Federation for Children CEO Tommy Schultz

"Opting in on this opportunity will benefit every student and family in Idaho, no matter what their educational choices may be. This is a chance to give Idahoans more-more support, more resources, and more options-without taking away from what we already have." - Idaho Superintendent of Public Instruction Debbie Critchfield

Click HERE to learn more about how the Working Families Tax Cuts encourage school choice.

Click HERE to learn more about the Finance Committee provisions in the Working Families Tax Cuts.