But Governor Evers still refusing to let private donors direct scholarship money to kids in Badger State
Total potential private giving through the new Federal Scholarship Tax Credit program for many American students — though not, due to opposition from Gov. Tony Evers, kids who live in Wisconsin — could be six times higher than previously estimated.
New estimates are coming out in the wake of the U.S. Treasury’s newly released proposed rules that clarify a key missing detail: The credit’s $1,700 limit is per individual — meaning that a married couple can steer up to $3,400 of their federal taxes toward the scholarship-granting nonprofit of their choice.
By the Treasury’s estimate, the tax credit now could mean up to $26 billion a year in additional education funding following children into any sort of K-12 school, all directed by individual donors. An earlier estimate from Congress’ scorekeeper put the figure much lower, at $4.4 billion annually by 2034.
Wisconsin taxpayers can claim the credit, which reduces a taxpayer’s federal taxes dollar-for-dollar, for donations to nonprofit “scholarship granting organizations” that give money to children for a list of specified education expenses. The wrinkle: Wisconsinites’ donations must be to scholarships in any of the states whose governors have opted into the program — 30, by the Treasury’s count.
Wisconsin Gov. Tony Evers has refused to opt in — meaning no donations, even from Wisconsin taxpayers, can help children here. The Treasury rules specify that taxpayers in any state can give to scholarship-granting organizations in other states. Evers’ refusal doesn’t affect Wisconsin taxpayers, only Wisconsin children.
The increased donation limit sharpens the question for Wisconsin’s next governor, who can choose to opt in for the 2028 tax year.
“We expect this credit to become the largest investment in education ever — anytime, anywhere,” said Dale Kooyenga, head of a key supporter of the credit, the Metropolitan Milwaukee Association of Commerce. “Wisconsin would be reckless to join the minority of states that refuse to reinvest their own taxpayers’ resources at home. Those dollars can go to the U.S. Treasury, students in other states, or Wisconsin’s public and private school students. The right choice couldn’t be clearer.”
The Badger Institute has covered the advent of the tax credit extensively. Among the coverage:
Questions and answers on key outlines of the tax credit — who can claim it, how the money will be channeled.
How Wisconsin public school leaders see their systems being able to tap donors’ generosity to help children.
Why Kooyenga thinks it’s inevitable that Wisconsin will opt in, letting donors give to help kids here.
The puzzling thinking of Evers in refusing to let Wisconsin taxpayers’ donations help children in Wisconsin.
Patrick McIlheran is executive editor at the Badger Institute.
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