Key Factors
Religious Freedoms
SEC. 5. ORGANIZATIONAL AND PARENTAL AUTONOMY of the bill states that there will be no government control over non-public schools that nothing in this Act, or any amendment made by this Act, shall be construed
to permit, allow, encourage, or authorize any Federal, State, or local government entity, or officer or employee thereof, to mandate, direct, or control any aspect of any private or religious elementary or secondary education institution.The bill goes onto state that no Federal, State, or local government entity, or officer or employee thereof, shall impose or permit the imposition of any conditions or requirements that would
exclude or operate to exclude educational expenses at private or religious elementary and secondary education institutions from being considered qualified elementary or secondary education expenses.In short, schools do not have to be concerned about government interference due to receipt of these funds.
Funding Tax Credits
$10 Billion in annual federal tax-credits will be made available for individuals and businesses
-Individuals can receive a 100% nonrefundable* federal tax-credit
on a contribution up to $5,000 or 10% of AGI, whichever is greater.
-Businesses can receive a 100% nonrefundable* federal tax-credit on a contribution of up to 5% of their taxable income.
*Nonrefundable – A nonrefundable tax-credit can reduce your tax liability down to zero but will never generate a refund.
Income Limits
Family income can be up to 300% of the median income by area as calculated by HUD.
-Click Here: HUD Income Limits
-Select your State and then your County and click “View County Calculations”
-Take amount listed under the section Median Family Income and multiply by 300%
What can you do to help get ECCA Passed?
Contact your state’s congressional delegation to co-sponsor and pass the ECCA
FAQs
My state has tax-credit scholarships already, can these existing credits be stacked on with the federal tax-credits?
Yes, ECCA scholarships can be stacked on top of state tax-credit scholarships in applicable states.
What Types of Schools and Educational Programs Are Eligible?
A public, home school, or private elementary or secondary school (including a religious elementary or secondary school)
Can Home schoolers Benefit From the Scholarship?
Yes, home schooling programs can benefit whether treated as a home school or a private school for purposes of applicable State law. Home schools must comply with applicable State law.
What Types of Educational Expenses Can the Scholarship Funds Be Used For?
- Tuition
- Curricula and curricular materials
- Books or other instructional materials
- Online educational materials
- Tuition for tutoring or educational classes outside of the home
- Fees for a nationally standardized norm-referenced achievement test
- Fees associated with an advanced placement examination or any examinations related to admission to an institution of higher education
- Fees for dual enrollment in an institution of higher education
- Educational therapies for students with disabilities provided by a licensed or accredited practitioner or provider
- Including occupational, behavioral, physical, and speech-language therapies.
Who Is Eligible to Receive Scholarships Under This Bill?
An eligible student is a student who is a member of a household with an income which is not greater than 300 percent of the area median gross income and is eligible to enroll in a public elementary or secondary school.
Can the Credit Be Carried Over to Future Years if It Exceeds the Tax Liability?
If the credit allowable for any taxable year exceeds the allowable amount, the excess shall be carried to the succeeding taxable year within five years.
How Does This Bill Differ From Traditional School Voucher Programs?
The ECCA scholarship funds come from taxpayers wanting to receive a federal tax-credit by choosing to redirect a portion of their federal income tax so students can attend the school of their choice…these are not government funds. Vouchers are scholarships that are given to students from state appropriated funds….these are government funds.
Who determines scholarship eligibility and amounts?
Scholarship Granting Organizations like Children's Tuition Fund determine the scholarship eligibility, amounts and use.
Can a State "Opt-out" of ECCA?
At this time, there is no opportunity for states to opt-out. If you want to send the allowable federal tax liability that applies to your personal tax situation, you can do that by submitting that amount to a 501c3 (ACSI-Children's Tuition Fund) and it is directed to the participating school of your choice.
