EdChoice on proposed IRS rule limiting the federal deductibility of charitable contributions

INDIANAPOLIS—EdChoice, a national nonprofit organization that promotes state-based educational choice programs, released the following statement from Vice President of Legal Affairs Leslie Hiner on a proposed IRS rule that would limit the federal deductibility of contributions to charitable organizations:

“EdChoice is disappointed that the IRS has proposed a rule limiting federal deductibility of contributions to charitable organizations. This wide-ranging ruling will even cover state-based tax credit scholarship programs that serve more than 250,000 mostly low income children.

“As usual, the government has taken a sledgehammer to a nail, overreaching in a way that will hurt children in need who have benefited from scholarships to attend schools where they can learn.

“The IRS chose to adopt a new rule after New York and a few other states who overtax their citizens at the state and local level had the audacity to create federal tax-dodging schemes for their high-income wage earners. These tax-dodging schemes do not compare in intent or purpose to the charitable programs created years ago to help children access K-12 education where they fit in and can learn.

“The IRS could have narrowly targeted the bad actor states that were trying to save a buck for big donors, but instead they overreached. We are pleased the IRS is allowing time for public comment and public hearing because we know that parents whose children are safe, happy and thriving in school as a direct result of receiving scholarships from tax credit scholarship programs will want their voices to be heard. EdChoice will stand on the side of children and families.”


EdChoice is a nonprofit, nonpartisan organization dedicated to advancing full and unencumbered educational choice as the best pathway to successful lives and a stronger society. EdChoice believes that families, not bureaucrats, are best equipped to make K-12 schooling decisions for their children. The organization works at the state level to educate diverse audiences, train advocates and engage policymakers on the benefits of high-quality school choice programs. EdChoice is the intellectual legacy of Milton and Rose D. Friedman, who founded the organization in 1996.