Tuition Tax Credits (TTCs)

Under this scheme, individuals or corporations receive a tax credit in exchange for giving money to an intermediary organization, often called a “scholarship organization.” Then, the “scholarship organization” writes a check for tuition at a private school. In short, rather than collecting taxes and then giving a portion to a private school (a voucher), the government forgoes those tax dollars so long as they go to a private school (a TTC). The end is the same—money funneled to private schools and away from public schools.

TTCs share the same problems inherent to vouchers; however, TTCs add an extra layer of bureaucracy, making them ripe for waste, fraud, and abuse.

Read More on “Education Freedom Scholarships”:

Talking points on Education Freedom Scholarship and Opportunity Act

Education Week: Would Betsy DeVos' Newest School Choice Idea Use 'Public Funds'?

The Washington Post: Let’s Fact-Check this Betsy DeVos Tweet about Trump’s $5 Billion School Tax Credit Proposal

Read More on Waste, Fraud, & Abuse:

NCPE Statement: Applauding IRS for the Final Rule Curtailing Tax Credit Loophole

Public Loss, Private Gain: How School Voucher Tax Shelters Undermine Public Education - Executive Summary (2017)

State Tax Subsidies for Private K-12 Education (2016)

The New York Times: DeVos and Tax Credit Vouchers: Arizona Shows What Can Go Wrong

The American Prospect: How States Turn K-12 Scholarships Into Money-Laundering Schemes

Read More on TTCs generally:

Fact Sheet on TTCs

Fact Sheet on TTC Bill: Educational Opportunities Act

Explanation of Types of Vouchers