Oregon — A new report from the Cascade Policy Institute is urging Oregon leaders to opt into a federal tax credit program that it says could expand educational opportunities for students across the state.
The report outlines the potential impact of the Federal Scholarship Tax Credit, a provision in recent federal legislation that allows individuals to receive tax credits for donations to qualifying scholarship-granting organizations. The program is scheduled to take effect in 2027 and requires states to opt in for local organizations to participate.
According to the report, participation could increase the amount of private funding available for student scholarships in Oregon. These funds could be used for a range of education-related expenses, including tuition, tutoring, extracurricular programs, and home-based learning.
The report states that scholarship funds could be used by students in both public and private education settings, depending on how participating organizations structure their programs within federal guidelines.
Oregon has not yet committed to the program. Governor Tina Kotek previously indicated she did not plan to opt in, though her office later said the state is awaiting additional federal guidance before making a final decision.
The report also notes that if Oregon does not participate, residents could still qualify for the tax credit by donating to scholarship organizations in other states, potentially directing funding outside Oregon.
Supporters cited in the report argue that opting in would allow more locally raised funds to support Oregon students and could encourage the development of new scholarship programs tailored to community needs.
The decision to participate will determine whether Oregon-based scholarship organizations can access the new funding stream when the program begins.
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