Scholarship Donation To Private Schools To Receive Tax Credits, Under Discussion

House Bill 5101, a bill that would allow tax credit for private school scholarship donations, is under discussion in a Wednesday public hearing. The said bill will benefit low-income students to be given better academic opportunities through private education.

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HB 5101 to further incentivize donations to SGOs

In an article from Connecticut Inside Investigator, several Connecticut private school representatives and nonprofit organizations showed support for the bill. President of Yankee Institute, Carol Platt Liebau, said that “there’s nothing that will drive a more vibrant, hopeful future for our state’s low-income children than a good education”. Proponents of the bill defended that it will further incentivize donations to Scholarship Granting Organizations (SGO) that will give more scholarships. More scholarship donation will provide better academic opportunities to low-income students.

Existing Connecticut law allows SGOs a tuition scholarship deduction which is less beneficial than tax credits.

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Opponents’ concern of diverted funds is overblown

Opponents of the bill said that it would be biased in favor of private schools. The underfunding of public school districts is already a problem, and students who don’t receive scholarships are left behind. A teacher and president of the Meriden Federation of Teachers, Lauren Mancini-Averitt, said that “they divert taxpayer dollars through SGOs that are unaccountable to taxpayers and even public officials.”

However, Rep. Holly Cheeseman, sponsor of HB 5101, said that the concern of diverted funds is overblown. The proposed bill would limit total yearly tax credits to up to $2.5 million.

READ ALSO: State Rep. Holly Cheeseman’s Suggestion: Addressing Rising Costs Through Tax Brackets And Maintaining Of The EITC