MADISON – A bill authored by Wisconsin Representative Jessie Rodriguez (R-Oak Creek) passed the State Assembly Wednesday afternoon.
Recently, the federal government created a new opportunity for families across the country to receive a dollar-for-dollar federal tax credit for charitable contributions to nonprofits that fund student scholarships. Starting in tax year 2027, taxpayers in any state will be able to claim up to $1,700 in federal tax credits for donations made to a qualified Scholarship Granting Organization (SGO) in a participating state. These SGOs may provide scholarships to students from families earning up to 300% of the area median income (AMI).
However, to make this opportunity available to Wisconsin students, the state must opt-in. 2025 Assembly Bill 602 (AB 602) directs the governor and his administration to notify the federal government that Wisconsin will participate in this federal program. Doing so would allow donors to support Wisconsin students, while receiving a federal tax benefit.
“Opting in ensures that these charitable dollars stay in Wisconsin and directly benefit Wisconsin kids. This is a chance to bring more resources into our classrooms – public, private, rural, and urban alike – and help students succeed,” Rodriguez explained. Scholarships may support students in public, private, charter, or homeschool settings, and can be used for expenses such as tutoring, transportation, or supplemental coursework. “Importantly, this program comes at no cost to the state. It is funded entirely by private donations incentivized through a federal tax credit,” Rodriguez continued.
“If Wisconsin chooses not to participate, our residents could still donate to SGOs in other states and claim the credit – but not a single Wisconsin student would benefit. Opting in simply keeps those contributions local and maximizes their impact on Wisconsin families. This isn’t about promoting one type of school over another – it’s about giving every family more tools to help their children learn and thrive,” concluded Rep. Rodriguez.
The bill now goes to the State Senate for consideration.
