Vermont may end tax credit for scholarship donations
An act relating to opting out of the federal tax credit program for contributions to scholarship granting organizations · Introduced as of 2026-01-23
Bad for everyday people — on our 1–10 scale, 1 hurts and 10 helps.
What it does
The bill would stop donors from getting a federal tax credit for giving to scholarship groups, so they would pay more taxes.
What it means for you
Citizens who fund scholarships would lose a tax break, making charitable giving more expensive. The state could collect extra revenue, but donors lose an incentive.
Who it's for
Government Power
Why it scores 2/10 — the receipts
- Accountability (neutral) — no new oversight. Bill does not add accountability measures
- Rights & Protections (hurts) — removes tax credit. Eliminates a tax benefit for donors
- Who Bears the Cost (hurts) — cost shifts to donors. Donors pay higher taxes
- Process Transparency (neutral) — standard committee referral. Bill just introduced, no special transparency
- Funding Tilt (hurts) — shifts revenue to state. State gains revenue, donors lose credit
Who's behind it
Democrat-sponsored (0R / 2D)