Big Beautiful Bill Contains Huge Gift for Private School Parents via "Scholarship Granting Organizations"

House and Senate versions contain dollar for dollar tax credit for donations to scholarship granting organizations -- usable to pay tuition for donors' child with careful planning

There is a provision in both the House and Senate version of the Big Beautiful Bill that is sure to eviscerate the general rule that tuition payments for private K-12 education are not deductible from federal taxes. Section 110109 of the House Bill and Senate Section 70411 are identical. Those provisions provide for a tax credit equal to the value of cash or marketable securities donated to a “Scholarship Granting Organization” (SGO). An SGO is a 501(c)(3) charity that provides scholarships to students from kindergarten through college. Here is some background from the Wall Street Journal: