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S. 4297: Keep Public Funds in Public Schools Act

This bill, titled the "Keep Public Funds in Public Schools Act," aims to modify the tax code related to educational funding by specifically addressing tax credits associated with scholarship granting organizations. Here are the primary components of the bill:

Repeal of Tax Credit

The bill proposes the repeal of a tax credit that individuals receive when they contribute to scholarship granting organizations. These organizations typically provide scholarships for students to attend private schools.

Amendments to the Internal Revenue Code

The following changes would be made to the Internal Revenue Code of 1986:

Striking Section 25F: The specific section corresponding to the tax credit for contributions to scholarship granting organizations would be removed.
Conforming Amendments: Other related sections of the tax code would be updated to reflect the repeal of the tax credit. This includes updating references in related sections and tables within the Code.

Exclusion from Gross Income

The bill also includes provisions to remove section 139K from the tax code, which deals with the exclusion from gross income related to these contributions to scholarship granting organizations.

Effective Date

The amendments proposed in this bill would become effective for taxable years ending after December 31, 2026. This means that the repeal of the tax credit and related changes would not take effect until tax filings in 2027 and beyond.

Purpose of the Bill

The underlying intent of this bill appears to be a shift in funding practices, focusing on keeping public funds within public schools rather than allowing them to be used for private school scholarships. This could potentially impact how educational funding is allocated in the future.