Massachusetts S 1984: An Act establishing an empowerment scholarship tax credit to expand educational opportunities

Summary

This bill creates a tax credit program that allows Massachusetts taxpayers to receive a 30% refundable tax credit (up to $250,000 per donation) when they donate money to scholarship programs at accredited private schools serving low- and moderate-income students. The program affects individual taxpayers, businesses, and pass-through entities like partnerships and trusts that make donations, as well as eligible students from low-income households and foster care who gain access to private school tuition assistance. The bill caps the total annual tax credits at $20 million and requires annual reporting on the program's performance and impact.

Bill Text

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SENATE DOCKET, NO. 729        FILED ON: 1/14/2025 
SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1984 
 
The Commonwealth of Massachusetts 
_________________ 
PRESENTED BY: 
Ryan C. Fattman 
_________________ 
To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General 
 Court assembled: 
 The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: 
An Act establishing an empowerment scholarship tax credit to expand educational opportunities. 
_______________ 
PETITION OF: 
 
NAME: DISTRICT/ADDRESS:  
Ryan C. Fattman Worcester and Hampden  
Bruce E. Tarr First Essex and Middlesex 2/26/2025 

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SENATE DOCKET, NO. 729        FILED ON: 1/14/2025 
SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1984 
By Mr. Fattman, a petition (accompanied by bill, Senate, No. 1984) of Ryan C. Fattman and 
Bruce E. Tarr for legislation to establish an empowerment scholarship tax credit to expand 
educational opportunities and fair access to quality education for low-and-moderate-income 
students.  Revenue. 
 
[SIMILAR MATTER FILED IN PREVIOUS SESSION 
SEE SENATE, NO. 1812 OF 2023-2024.] 
 
The Commonwealth of Massachusetts 
 
_______________
 
In the One Hundred and Ninety-Fourth General Court 
(2025-2026) 
_______________
 
 
An Act establishing an empowerment scholarship tax credit to expand educational opportunities. 
 
 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority 
of the same, as follows: 
 
1 SECTION 1. Section 6 of chapter 62 of the General Laws, as appearing in the 2022 
2Official Edition, is hereby amended by inserting after paragraph (cc) (1) the following new 
3subsection:- 
4 (dd) (1) A taxpayer making a qualified donation to a qualified scholarship program 
5offered to qualifying students to an accredited Massachusetts tuition-based school providing 
6elementary and/or secondary education, shall be allowed a refundable credit against the taxes 
7imposed by this chapter.     
8 (2) As used in this subsection, the following words have the following meanings:- 

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9 “Qualified donation”, a monetary donation to a “qualified scholarship program”. 
10 “Qualified scholarship program”, a means-tested scholarship program offered and 
11maintained by any Massachusetts accredited tuition-based school providing elementary and/or 
12secondary education. 
13 “Qualifying students”, students residing in the Commonwealth of Massachusetts who 
14would otherwise be accepted to any of the afore-referenced tuition-based schools but for the 
15inability to afford tuition, fees and related education expenses, specifically only students whose 
16household income levels do not exceed a specified amount or who are in foster care or out-of-
17home care. 
18 “Accredited Massachusetts tuition-based school providing elementary and/or secondary 
19education”, any elementary, middle or high school located in the Commonwealth of 
20Massachusetts which has any nationally- or state-recognized accreditation and which maintains a 
21means-based scholarship program for students who would otherwise be accepted to the school 
22but for the inability to afford tuition, fees and related education expenses. 
23 “Taxpayer”, a taxpayer subject to an excise under this chapter.   
24 (3) A taxpayer making a qualified donation to a qualified scholarship program shall be 
25allowed a refundable credit against the taxes imposed by this chapter.  The credit shall be equal 
26to 30 per cent of the amount of the qualified donation. The amount of the credit that may be 
27claimed by a taxpayer for each qualified donation shall not exceed $250,000. 

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28 (4) If the amount of the credit allowed under this subsection exceeds the taxpayer’s 
29liability, the commissioner shall treat the excess as an overpayment and shall pay the taxpayer 
30the entire amount of the excess. 
31 (5) All or any tax credits issued in accordance with this section may be in addition to any 
32charitable deductions claimed on the taxpayer’s federal income tax return for the same qualified 
33donations. 
34 (6)  Any tax credits which arise under this section from the qualified donation by a pass-
35through tax entity such as a trust, estate, partnership, corporation, limited partnership, limited 
36liability partnership, limited liability corporation, subchapter S organization, or other fiduciary, 
37shall be used either by such entity in the event it is the taxpayer on behalf of such entity or by the 
38member, partner, shareholder, or beneficiary, as the case may be, in proportion to its interest in 
39such entity in the even that income, deductions, and tax liability passes through such entity to 
40such member, partner, shareholder, or beneficiary. Such tax credits may not be claimed by both 
41the entity and the member, partner, shareholder, or beneficiary, for the same donation. 
42 (7) Any tax credits