Texas Border Business
Texas Border Business
Texas is one of the 23 states participating in the Education Freedom Tax Credit, a federal program created under the Working Families Tax Cuts Act that allows taxpayers to support education through targeted tax credits. The U.S. Departments of Education and Treasury released a joint fact sheet explaining that the program allows taxpayers to receive a federal tax credit of up to $1,700 for contributions made to approved Scholarship Granting Organizations, or SGOs. These contributions would otherwise be paid in federal income taxes and are instead used to fund education scholarships for students. According to the Departments, the goal is to expand access to education options and give families more control over how their children are educated.
Through Texas’s participation, families in the state can benefit from scholarships funded by these contributions to help pay for qualified education expenses. The Departments explain that eligible expenses include private school tuition, tutoring, and education-related services for students with disabilities, as well as other costs connected to K–12 public, private, or charter school education. The U.S. Department of Education stated that the Education Freedom Tax Credit represents “the largest national expansion of education freedom in history,” emphasizing that it is designed to help families afford educational services that meet their children’s individual needs.
U.S. Secretary of Education Linda McMahon said the program helps families “afford key education services—like tutoring and scholarships—so they can tailor their child’s educational journey and access opportunities that meet their needs.” She added that the credit helps ensure families have real options regardless of income. Treasury Secretary Scott Bessent said the program puts decision-making power in the hands of parents and noted that the Working Families Tax Cuts Act created “the first-ever federal tax credit for K–12 scholarships.” He also encouraged states to participate so more families can benefit from expanded access to education.
By opting into the Education Freedom Tax Credit, Texas joins states such as Florida, Ohio, and Tennessee in allowing residents to use the program to support student learning. Federal officials describe the credit as a way to increase educational opportunity without creating new federal spending programs, while giving families more flexibility to choose the educational path that best fits their children’s needs.
Read the full fact sheet below or follow this link:
