Proposal would remove tax credit for donations funding scholarships

Congress would remove the tax credit for contributions to scholarship-granting organizations. The provision concerns donations to organizations that award scholarships. The removal would apply to tax years ending after December 31, 2026.

Congress would remove the income-tax exclusion in section 139K. An income-tax exclusion is a rule that keeps covered money out of taxable income. The removal would apply to amounts received after December 31, 2026, in tax years ending after that date.