The Montana House is advancing legislation that would more than double the amount of donations that could be accepted for both the Student Scholarship Organization Credit and the Innovative Educational Program Tax Credit.
These innovative programs allow for flexibility for families seeking educational options for children.
We have detailed how tax credit scholarships can be an effective tool in advancing education choice and improving outcomes.
Tax credit scholarship programs give families greater access to high-quality private schools by providing incentives to assist in expanding the opportunity to more students.
Scholarship tax credit programs create new pools of funding so that children can receive scholarships to attend the private schools of their parents’ choice. Corporations and individuals make private donations to nonprofit organizations that provide scholarships to eligible children. In return, the corporations and individuals receive a state income tax credit.
There are 21 scholarship tax credit programs operating across the country, and research has demonstrated that these programs are positive for student achievement and save money for state and local governments.
The reason for expansion in Montana has clearly been the demand. Since a similar bill passed in 2021, the caps for the programs were met in less than an hour.