STATEMENT: DFI Releases Statement on Treasury Department’s Proposed Regulations on the Education Freedom Tax Credit 

WASHINGTON — The Defense of Freedom Institute’s Education Freedom and Parental Rights Director, Ginny Gentles, released the following statement on the Treasury Department’s new proposed regulations on the Education Freedom Tax Credit:

The Treasury Department’s proposed regulations are a major step toward realizing the transformative potential of the Education Freedom Tax Credit. 

The proposed regulations incorporate several of DFI’s recommendations made via public comment, including allowing each member of married couples filing jointly to receive a tax credit for their donations. Importantly, the rule also guarantees that governors may not unfairly disqualify Scholarship Granting Organizations (SGOs) based on the type of schools scholarship recipients attend. 

Families should be encouraged by this major step, which translates lawmakers’ intent into an actionable road map for implementing the nation’s first federal school choice initiative. SGOs now have clear instructions for operating within the boundaries of the law and to the maximum benefit of the students they will serve. Taxpayers and donors can rely on a trustworthy process for ensuring donations and companion tax credits are processed fairly. Millions of students will benefit from expanded access to schools and supportive services that meet their unique learning needs. 

With the clarity provided today, governors now have no excuse not to opt in to the Education Freedom Tax Credit. The remaining holdout states should rectify that situation immediately, bringing relief and new hope to families seeking alternatives to their residentially assigned schools.