H.R. 2798 · Where this bill is now
In committee
Introduced in the House, sent to the Committee on Ways and Means, Apr 9, 2025
What this bill does
In plain words · AI-written from the official summaryFederal tax credit for charter school donations
This bill creates a federal tax credit that lets individuals reduce their taxes by 75% of money they donate to eligible charter school organizations. The donations would go toward creating or expanding charter schools. There's a yearly budget of $5 billion for these credits, with $10 million set aside for each state, and the IRS would track donations in real time to make sure schools spend the money within required timelines.
How it affects you
If you donate cash or investment securities to a qualifying charter school organization, you could lower your federal taxes by 75% of that donation, up to $5,000 or 10% of your income, whichever is greater. If you support charter schools but don't have enough tax liability to use the full credit in one year, you can carry it forward for up to five years. For most Americans who don't donate to charter schools, this change won't directly affect you.
Read the official summary (Introduced in House, Apr 9, 2025)
High-Quality Charter Schools Act
This bill establishes a federal tax credit for 75% of the qualified contributions of cash or market securities made by an individual to an eligible charter school organization to create or expand the charter schools operated or managed by the organization. (Limitations apply.)
The bill limits the tax credit to the greater of $5,000 or 10% of the individual’s adjusted gross income. The tax credit is not refundable, but any amount of the tax credit that exceeds an individual’s tax liability for the tax year may be carried forward for up to five tax years.
Further, the bill establishes an annual $5 billion volume cap (which must be increased under certain circumstances) from which $10 million must be distributed to each state for allocation of the tax credit to individuals residing in the state. The remaining amount of the volume cap must be allocated to individuals on a first-come, first-serve basis. The bill requires the Internal Revenue Service (IRS) to develop a system for tracking qualified contributions in real time.
Under the bill, an eligible charter school organization generally is required to spend all of the qualified contributions (less reasonable administrative expenses) within a certain amount of time. If the IRS determines that an organization has failed to meet such spending requirements, the tax credit is not allowed for contributions to the organization for one year after the date of the determination.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionH. R. 2798
A BILL
High-Quality Charter Schools Act
Sponsor: Rep. Claudia Tenney (R-NY-24) · Introduced Apr 9, 2025 · Taxation · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Apr 9, 2025: “Referred to the House Committee on Ways and Means.”