Pioneer Institute Releases 2025 Toolkit to Guide Policymakers on Education Tax-Credit Scholarship Programs

BOSTON--(BUSINESS WIRE)--Pioneer Institute has released the 2025 edition of its Tax–Credit Education Scholarship Toolkit, a resource for state policymakers looking to expand educational opportunity through tax–credit scholarship (TCS) programs. These programs allow individual and corporate taxpayers to receive tax credits for donations to scholarship-granting organizations (SGOs), which in turn fund students attending schools other than their assigned district schools.

According to the updated toolkit, more than 330,000 students nationwide are using tax–credit scholarships to attend schools of their families’ choice. Twenty-five TCS programs are active in 21 states, providing alternatives to traditional public education

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Currently, Massachusetts does not have a TCS program.

According to the updated toolkit, more than 330,000 students nationwide are using tax–credit scholarships to attend schools of their families’ choice. Twenty-five TCS programs are active in 21 states, providing alternatives to traditional public education and increasing access to a wider range of educational options.

“Policymakers should craft TCS programs to maximize the incentives for taxpayers to contribute to SGOs, the number of families that can benefit from the scholarships, and the freedom and flexibility SGOs have to serve those families,” said Jason Bedrick, author of Earning Full Credit: A Toolkit for Designing Tax–Credit Scholarship Policies (2025 Edition).

TCS programs enjoy strong support from both parents and the general public:

• A 2018 Florida survey of over 14,000 scholarship families found 92% were satisfied with the program and 90% were satisfied with the school their child attended.
• The 2022 Education Next survey showed 61% of Americans support TCS policies, including 66% of parents of school-aged children, 72% of Black Americans, and 70% of Hispanic Americans.
• The 2024 EdChoice “Schooling in America” survey found 69% of the general public and 79% of K–12 parents support TCS policies.

The programs can also offer fiscal benefits to states. When designed effectively, TCS policies can be revenue neutral or produce state savings, especially when the cost of tax credits is less than the resulting reduction in public school expenditures. A 2024 study by Dr. Martin Lueken found that 48 educational choice programs, including 21 TCS programs, saved state and local taxpayers between $19.4 billion and $45.6 billion through fiscal year 2022.

The toolkit provides a series of policy recommendations to help states design effective TCS programs:

• Eligibility: All students should be eligible, with priority given to those most in need. Currently, about two-thirds of programs impose income-based restrictions.
• Tax Credit Value: Credits should be as close to 100% as possible to maximize donor participation. Today’s credits range from 50% to 100%, with just over half offering a full credit.
• Credit Caps: Caps should be high enough to meet family demand, and should include “escalator clauses” to grow with demand over time.
• Scholarship Size: Scholarship amounts should approach the state portion of per-pupil public school funding and be usable for related expenses like tutoring, online courses, and educational therapy.
• SGO Autonomy: States should allow SGOs – nonprofits registered under the TCS program – to define their own mission, whether it’s supporting religious schools, Montessori models, or specific communities.
• Testing and Accountability: Schools should be allowed to choose from multiple norm-referenced tests, giving parents insight into student progress without limiting school flexibility.

The 2025 toolkit aims to help state leaders design tax–credit scholarship programs that are both impactful and sustainable, creating a broader range of educational opportunities for families nationwide.

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