Education Tax Breaks
Education tax credits are an emerging area of research for ITEP. In 2016, ITEP released a noteworthy report that examined how states are subverting public will and, in some cases, their state constitutions by funneling public money to private and parochial schools via controversial and generous tax credits. A surprising finding was that in at least nine states, these tax credits are so incredibly generous that upper-income taxpayers can turn a profit. Because public, taxpayer dollars remain critical for high quality public education, ITEP continues to explore the effect education tax credits are having on state budgets and public school funding.
media mention March 3, 2017
American Prospect: How States Turn K-12 Scholarships Into Money-Laundering SchemesThis article was originally published in The American Prospect. By Carl Davis Politicians have long had a knack for framing policy proposals, however controversial, in terms that make them more…
report October 12, 2016
State Tax Subsidies for Private K-12 Education
This report explains the workings, and problems, with state-level tax subsidies for private K-12 education. It also discusses how the Internal Revenue Service (IRS) has exacerbated some of these problems by allowing taxpayers to claim federal charitable deductions even on private school contributions that were not truly charitable in nature. Finally, an appendix to this report provides additional detail on the specific K-12 private school tax subsidies made available by each state.
report March 22, 2016
Higher Education Income Tax Deductions and Credits in the StatesRead full report in PDF Download detailed appendix with state-by-state information on deductions and credits (Excel) Every state levying a personal income tax offers at least one deduction or credit…
report February 15, 2000
Analysis of Virginia Tuition Tax Credit ProposalThe Institute on Taxation and Economic Policy (ITEP) has analyzed the proposed “Virginia Children’s Educational Opportunity Act 2000” (H.B. 68 and S.B. 336), to measure the effects of the bill’s…