Save Our Tax Credit Scholarship Program

I am asking you to vote no on HB 23 which caps individual contributions to Student Scholarship Organizations at $2,000. 

Tax Credit Scholarships (TCS) were passed by the Montana State Legislature in 2016.  It allowed a maximum of $150 to be contributed by an individual or a business to a non-profit scholarship awarding organization, referred to as a Student Scholarship Organization (SSO). Parents could apply for funding through the SSO. The donor would receive a dollar in tax credits for each dollar contributed. 

In 2021, the Montana State Legislature passed HB279 and increased the amount an individual or business could contribute from $150 to $200,000.  As a result, more students were served, it was far easier to raise scholarship funds, and the program has been operating well. 

HB 23 would cap individual contributions to Student Scholarship Organizations in support of private school education at $2,000 per contribution, a very large reduction from the current cap of $200,000.   This will be a disincentive for contributors as the average contribution is approximately $14,000. 

The bill’s sponsor says this bill is designed to allow more taxpayers to benefit from tax credits.   We feel that lowering the cap to address this issue is the wrong approach. If you want to incentivize and increase the number of contributors, then the best course of action is to increase the overall cap of the TCS program.   

The tax credit is designed primarily to help parents have access to and be able to afford the education that best suits the needs of their child. Offering a tax credit is a good incentive. 

The TCS program has been working to help parents and children afford private school education.  It was ruled Constitutionally sound by the US Supreme Court and needs to be defended. 

Please vote no on HB 23!