Comments to Treasury on Tax Credit for Contributions to Scholarship Granting Organizations

In December 2025, the PreK-12 Education Policy program at New America submitted comments to the U.S. Department of the Treasury on implementation of the Individual Tax Credit for Qualified Contributions to Scholarship Granting Organizations (SGOs). This is a new tax credit authorized by H.R. 1, also known as the One Big Beautiful Bill Act, of 2025. 

 In order to preempt potential harms in the operations of the tax credit system and to bolster the educational options embraced by most students and families, we have outlined ways that the Treasury Department can use its forthcoming regulations to ensure the execution of this program is equitable and efficient.  Our comment includes recommendations for clarifying federal nondiscrimination requirements, affirming state discretion to set requirements for SGO eligibility, and affirming state discretion to interpret the laws regarding allowable expenditures in line with the needs of students in their states. We also recommend that Treasury issue specific rules to ensure effective, transparent, and fair SGO operations.