Education

House tax committee kills federal tax credit for independent schools

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One Big Beautiful Bill gives scholarship donors $1700 federal tax credit – but Dem majority doesn’t want it

By Guy Page

Vermonters will not be allowed to take a federal tax credit for contributing to a private/independent school scholarship program, if a House Ways & Means Committee miscellaneous tax bill introduced yesterday becomes law.

H.933, titled “miscellaneous administrative and policy changes to the tax laws,” rules that “Vermont shall not participate in the federal tax credit program for contributions to scholarship granting organizations under 26 U.S.C. § 25F,” and “any election to the contrary made by another State official or entity is void and shall have no effect.”

The One Big Beautiful Bill legislation passed by Congress last year allows states to allow state taxpayers to receive a dollar-for-dollar credit on their federal taxes for up to $1700 of donations to a private (including religious) scholarship granting organization. 

However, the OBB also lets states opt out of the program. At the behest of Ways and Means Chair Emilie Kornheiser (D-Brattleboro), the committee voted to not allow the federal tax grant. 

All four Republicans on Ways & Means voted to keep the tax credit, but they were outnumbered by a unanimous vote of the Democrat majority. 

The GOP members on Ways & Means are Mark Higley (Lowell), Bill Canfield (Fair Haven), Woodman Page (Newport) and Carolyn Branagan (Georgia). Democrat members, besides Kornheiser, include Charles Kimbell (Woodstock), Bridget Burkhardt (South Burlington), Rebecca Holcombe (Norwich), James Masland (Thetford), Carol Ode (Burlington), and Edward “Teddy” Waszazak (Barre City). 

Page said the tax credit was a matter of interest at a recent legislative breakfast, especially by parents involved with the local Christian school. 

H.933 – which has many other proposed tax changes – was referred to the Appropriations Committee. Republican Ways & Means Committee members said a floor amendment to restore the federal tax credit may be proposed. The Senate reportedly has an opt-in in the works. If it passes the Senate, it will likely be addressed in a House-Senate committee of conference. 


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Categories: Education, Legislation

23 replies »

  1. Vermont taxpayers can take advantage of the $1700 dollar for dollar tax credit by contributing to scholarship programs in other states. Contributions can be divided among schools. I googled “What non-woke independent schools with scholarships have success with at risk students?”. There are many good choices. Unfortunately, there are some Vermont schools that qualify such as Putney School and Greenwood School, but thanks to Kornheiser and comrades they are ineligible.

  2. This is truly evil. Steve is correct, this doesn’t prevent Vermont taxpayers from taking care of the tax credit. All it does is disallow the money to be spent from the program in VT for low income students to access tutoring, school supplies, or in some cases tuition to public or independent schools. These people are narcisistic sociopaths who would rather see children suffer and fail than not have control over the choices other people should be free to make. Scott needs to veto this!

  3. I don’t understand how the state can override a federal policy particularly if it is a federal income tax credit. It seems discriminatory to me especially if the school is religious.

  4. Nothing illustrates the obsession with a monopoly on education as much as this action. The overlords in Montpeculier just can’t bear the thought of the indoctrination machine aka public, NEA ruled education losing any to an alternative approach. 😡

  5. Thanks, Rob, for your comment and your editorial. Vermont education is in a race for mediocrity. These legislators fear competition and will destroy it whenever possible.

  6. I don’t understand how the state can override a federal policy particularly if it is a federal income tax credit. It seems discriminatory to me especially if the school is religious.

  7. The powers that be seem determined not to see a single dime go to Vermont’s religious schools—either through the creation of Act 73, which in part appears to be an attempt to circumvent the requirements of the Carson v. Makin decision, or through new legislation that would effectively deny Vermonters’ use of federal tax credits at these schools.
    A 2024 Vermont Law Review article suggests strategies for lawmakers: Free Exercise or Forced Establishment? Why the Supreme Court got Carson v. Makin Wrong and WHAT VERMONT CAN DO ABOUT IT (emphasis added), https://lawreview.vermontlaw.edu/free-exercise-or-forced-establishment-why-the-supreme-court-got-carson-v-makin-wrong-and-what-vermont-can-do-about-it/.
    This is followed by a 2025 VTDigger article, Vermont’s new education law signals an end to state funding for religious schools, https://vtdigger.org/2025/08/20/vermonts-new-education-law-signals-an-end-to-state-funding-for-religious-schools/. It reports that lawmakers who spoke to VTDigger said that the changes to funding for religious schools WERE A SIDE EFFECT (emphasis added) of the policy changes enacted last session.
    At a minimum, education reform does not prioritize giving Vermonters more choice to decide what is best for their children’s education.

    • Some will say since religious institutions don’t pay taxes, then tax money shouldn’t be paid to religious institutions.
      Some will agree some won’t.

  8. They are evil. Anything to try and keep kids in the poorly run public schools !! Remember this come voting time!!!!

    • Sadly, only the residents of Brattleboro, Norwich, Woodstock, Barre City, Burlington, and South Burlington can vote those fools out. What’s sadder, is the NEK can put good people in Montpelier, but the deck is stacked against them . . .

  9. These clowns need to be sent packing, every one of them. One of the things they are afraid of is direct tuition help to the students. With some creativity it may become a reality regardless of what the morons on full display here do or say. They cannot function unless they have control. And this applies to everything that falls in Montpelier as money, Time to get out the boot and put into gear, high gear no less.

  10. They must protect the government indoctrination centers at all costs!!!!!!

    And of course they can withstand zero competition because they are truly failed in mission and in cost effectiveness.

    This shows who truly runs our state, unions, lobbyists, NGO’s and of course they are all puppets of the United Nations, we are after all a colony of them. It is long time we declare our independence once again.

    • The results of home schooled Christian’s is a staggering thing to witness, the wisdom and maturity of young people is so drastically different from what the world is producing, stable, reasonable, articulate, well functioning young adults in the fallen world. We would be so much better off with this track.

  11. Vermont Democrats are collectivists, an unbrella term that includes socialists and communists, too. They want all children to be raised under their collectivist ideology – their single god is “humanity” and their single church is the State. They rule via tyranny of the majority, which trumps individual rights. They control the media and public education. Vermonters better start waking up to this reality.

  12. Impressive. They suddenly exhibit a staggering amount of competency when it comes to collectivist objectives.

  13. From the Wall Street Journal today:

    “Education news out of Illinois tends to be grim. But a glimmer of hope comes from Tuesday’s primary election results, as voters showed their support for school choice, and the Chicago Teachers Union (CTU) had a bad night.
    Voters in more than 30 counties or townships—out of 102 counties in the state—weighed in on a nonbinding ballot question asking if the state should opt into the new federal tax-credit scholarship program. Some 64% of voters said yes, and the referendum passed in all jurisdictions that have final results”

    Seem the VT legislature is again doing the dirty work of the VTNEA, VSA and VPA and ignoring the voters. Pretty sad. Even Illinois voters are trying to break the chains of the teachers union and that state is pretty far left.

  14. In most states it is the governor agreeing to allow the federal tax credit to be set or activated in the state. Will this legislative action if it is approved by both chambers, prevent him from approving it?

  15. You will get the deduction if you are give the money to a school in a state that allows it. My kids are grown up so it doesn’t affect me. But if we could afford it I would give $3,400 to one of those schools just out of spite. The NEA must be threatening to cut the purse strings of the liberal representatives. How freaking corrupt are these idiots.

  16. Democrats are Domestic Terrorists! It is a Federal Credit and has nothing to do with these Communist Democrats in Vermont who have over taxed and burdened Vermont citizens to the point that they are all leaving

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