I 
119TH CONGRESS 
1ST SESSION H. R. 2798 
To amend the Internal Revenue Code of 1986 to allow a credit against 
tax for charitable donations for the creation or expansion of charter schools. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 9, 2025 
Ms. TENNEY (for herself, Mr. KILEY of California, Ms. MALLIOTAKIS, and 
Mr. OWENS) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to allow a 
credit against tax for charitable donations for the cre-
ation or expansion of charter schools. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘High-Quality Charter 
Schools Act’’. 
SEC. 2. TAX CREDIT FOR CONTRIBUTIONS TO ELIGIBLE 
CHARTER SCHOOL ORGANIZATIONS. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
VerDate Sep 11 2014 
23:18 Apr 22, 2025
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H2798.IH
H2798
kjohnson on DSK7ZCZBW3PROD with $$_JOB
1986 is amended by inserting after section 25E the fol-
lowing new section: 
‘‘SEC. 
25F. 
CONTRIBUTIONS 
TO 
ELIGIBLE 
CHARTER 
SCHOOL ORGANIZATIONS. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual who is a citizen or resident of the United States 
(as defined in section 7701(a)(9)), there shall be allowed 
as a credit against the tax imposed by this chapter for 
the taxable year an amount equal to 75 percent of the 
amount of qualified contributions made by the taxpayer 
during the taxable year. 
‘‘(b) AMOUNT OF CREDIT.—The credit allowed under 
subsection (a) in any taxable year shall not exceed an 
amount equal to the greater of— 
‘‘(1) 10 percent of the adjusted gross income of 
the taxpayer for the taxable year, or 
‘‘(2) $5,000. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) CHARTER
SCHOOL.—The term ‘charter 
school’ has the same meaning given such term in 
section 4310 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7221i). 
‘‘(2) ELIGIBLE
CHARTER
SCHOOL
ORGANIZA-
TION.— 
VerDate Sep 11 2014 
23:18 Apr 22, 2025
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H2798.IH
H2798
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(A) IN
GENERAL.—The term ‘eligible 
charter school organization’ means an organiza-
tion which— 
‘‘(i) is described in section 501(c)(3) 
and exempt from tax under section 501(a) 
and is not a private foundation, 
‘‘(ii) is a charter management organi-
zation (as defined in section 4310 of the 
Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 7221i)), or a charter 
school (as defined in section 4310 of the 
Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 7221i)), that— 
‘‘(I) has received, or manages a 
charter school that has received, a 
grant for the replication or expansion 
of high-quality charter schools under 
section 4305(b) of the Elementary 
and Secondary Education Act of 1965 
(20 U.S.C. 7221d(b)), or 
‘‘(II) has been selected by a 
State for eligibility under this section 
based on a determination by the State 
that the organization is in the highest 
10 percent of charter management or-
VerDate Sep 11 2014 
23:18 Apr 22, 2025
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2798.IH
H2798
kjohnson on DSK7ZCZBW3PROD with $$_JOB
ganizations (as so defined) or charter 
schools (as so defined) for student 
performance in the State, 
‘‘(iii) separate from any other funds 
or contributions received by such organiza-
tion, maintains and accounts for any con-
tributions made by any person for the pur-
pose of the creation or expansion of char-
ter schools operated or managed by such 
organization, 
‘‘(iv) obtains from an independent cer-
tified public accountant annual financial 
and compliance audits, and 
‘‘(v) certifies to the Secretary (at such 
time, and in such form and manner, as the 
Secretary may prescribe) that the audit de-
scribed in clause (iii) has been completed. 
‘‘(B) INDEPENDENT
CERTIFIED
PUBLIC 
ACCOUNTANT.—For purposes of subparagraph 
(A), the term ‘independent certified public ac-
countant’ means, with respect to an organiza-
tion, a certified public accountant who is not a 
person described in section 465(b)(3)(A) with 
respect to such organization or any employee of 
such organization. 
VerDate Sep 11 2014 
23:18 Apr 22, 2025
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2798.IH
H2798
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(3) QUALIFIED
CONTRIBUTION.—The term 
‘qualified contribution’ means a charitable contribu-
tion (as defined by section 170(c)) to an eligible 
charter school organization in the form of cash or 
marketable securities for the purpose of the creation 
or expansion of charter schools managed or operated 
by such organization. 
‘‘(d) DENIAL OF DOUBLE BENEFIT.—Any qualified 
contribution for which a credit is allowed under this sec-
tion shall not be taken into account as a charitable con-
tribution for purposes of section 170. 
‘‘(e) CARRYFORWARD OF UNUSED CREDIT.— 
‘‘(1) IN
GENERAL.—If the credit allowable 
under subsection (a) for any taxable year exceeds 
the limitation imposed by section 26(a) for such tax-
able year reduced by the sum of the credits allowable 
under this subpart (other than this section, section 
23, and section 25D), such excess shall be carried to 
the succeeding taxable year and added to the credit 
allowable under subsection (a) for such taxable year. 
‘‘(2) LIMITATION.—No credit may be carried 
forward under this subsection to any taxable year 
following the fifth taxable year after the taxable year 
in which the credit arose. For purposes of the pre-
VerDate Sep 11 2014 
23:18 Apr 22, 2025
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H2798.IH
H2798
kjohnson on DSK7ZCZBW3PROD with $$_JOB
ceding sentence, credits shall be treated as used on 
a first-in first-out basis. 
‘‘(f) APPLICATION
OF VOLUME CAP.—A qualified 
contribution shall be taken into account under this section 
only if such contribution would not result in aggregate tax 
credits under this section that are in excess of the volume 
cap established under section 4 of the High-Quality Char-
ter Schools Act.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part IV of subchapter A of chapter 1 
of such Code is amended by inserting after the item relat-
ing to section 25E the following new item: 
‘‘Sec. 25F. Contributions to eligible charter school organizations.’’. 
SEC. 3. FAILURE OF ELIGIBLE CHARTER SCHOOL ORGANI-
ZATION TO MAKE EXPENDITURES. 
(a) IN GENERAL.—Chapter 42 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subchapter: 
‘‘Subchapter I—Eligible Charter School 
Organizations 
‘‘Sec. 4969. Failure to expend receipts. 
‘‘SEC. 4969. FAILURE TO EXPEND RECEIPTS. 
‘‘(a) IN GENERAL.—In the case of any eligible char-
ter school organization (as defined in section 25F(c)(2)) 
which has been determined by the Secretary to have failed 
to satisfy the requirement under subsection (b) for any 
VerDate Sep 11 2014 
23:18 Apr 22, 2025
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2798.IH
H2798
kjohnson on DSK7ZCZBW3PROD with $$_JOB
taxable year, any contribution made to such organization 
during the first taxable year beginning after the date of 
such determination shall not be treated as a qualified con-
tribution (as defined in section 25F(c)(3)) for purposes 
of section 25F. 
‘‘(b) REQUIREMENT.—The requirement described in 
this subsection is that the amount of qualified contribu-
tions of the eligible charter school organization for the tax-
able year which are expended before the expenditure dead-
line with respect to such receipts shall not be less than 
the required expenditure amount with respect to such tax-
able year. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) REQUIRED EXPENDITURE AMOUNT.— 
‘‘(A) IN GENERAL.—The required expendi-
ture amount with respect to a taxable year is 
the amount equal to 100 percent of qualified 
contributions for such taxable year— 
‘‘(i) reduced by the sum of such quali-
fied contributions that are retained for rea-
sonable administrative expenses for the 
taxable year or are carried to the suc-
ceeding taxable year under subparagraph 
(C), and 
VerDate Sep 11 2014 
23:18 Apr 22, 2025
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H2798.IH
H2798
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(ii) increased by the amount of the 
carryover under subparagraph (C) from 
the preceding taxable year. 
‘‘(B) SAFE HARBOR FOR REASONABLE AD-
MINISTRATIVE
EXPENSES.—For purposes of 
subparagraph (A)(i), if the percentage of total 
qualified contributions to an eligible charter 
school organization for a taxable year which are 
used for administrative purposes related to ac-
tivities for the creation or expansion of charter 
schools (as defined in section 25F(c)(1)) oper-
ated or managed by such organization is equal 
to or less than 10 percent, such expenses shall 
be deemed to be reasonable for purposes of 
such subparagraph. 
‘‘(C) CARRYOVER.—With respect to the 
amount of the total qualified contributions to 
an eligible charter school organization with re-
spect to any taxable year, an amount not great-
er than 15 percent of such amount may, at the 
election of such organization or school, be car-
ried to the succeeding taxable year. 
‘‘(2) EXPENDITURES.—The term ‘expenditures’ 
includes amounts which are formally committed but 
not expended. A formal commitment described in the 
VerDate Sep 11 2014 
23:18 Apr 22, 2025
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2798.IH
H2798
kjohnson on DSK7ZCZBW3PROD with $$_JOB
preceding sentence may include qualified contribu-
tions set aside for the creation or expansion of char-
ter schools operated or managed by such organiza-
tion for more than one year. 
‘‘(3) EXPENDITURE DEADLINE.—The expendi-
ture deadline with respect to qualified contributions 
for a taxable year is the first day of the fifth taxable 
year following the taxable year in which such quali-
fied contributions are received by the eligible charter 
school organization. 
‘‘(4) QUALIFIED
CONTRIBUTIONS.—The term 
‘qualified contributions’ means contributions eligible 
for the credit under section 25F.’’. 
(b) CLERICAL AMENDMENT.—The table of sub-
chapters for chapter 42 of such Code is amended by add-
ing at the end the following new item: 
‘‘SUBCHAPTER I. ELIGIBLE CHARTER SCHOOL ORGANIZATIONS’’. 
SEC. 4. VOLUME CAP. 
(a) ALLOCATION.— 
(1) IN
GENERAL.—For purposes of section 
25F(f) of the Internal Revenue Code of 1986 (as 
added by this Act), the volume cap applicable with 
respect to such section shall be $5,000,000,000 of 
tax credits for taxable years beginning in calendar 
year 2026 and each subsequent year thereafter, with 
such amount to be allocated as follows: 
VerDate Sep 11 2014 
23:18 Apr 22, 2025
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H2798.IH
H2798
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(A) $10,000,000 of tax credits shall be al-
located to each State (as defined in section 
7701(a)(10) of the Internal Revenue Code of 
1986), with such amount to be made available, 
in the manner described in subsection (b), for 
any individual residing in such State to claim 
the credit allowed under section 25F of the In-
ternal Revenue Code of 1986 with respect to 
any qualified contributions (as defined in such 
section) made by such individual during any 
taxable year beginning during such calendar 
year. 
(B) With respect to the amount remaining 
after the allocation under subparagraph (A), 
such amount (as adjusted pursuant to para-
graph (3)) shall be made available, in the man-
ner described in subsection (b), for any indi-
vidual to claim the credit allowed under section 
25F of the Internal Revenue Code of 1986 with 
respect to any qualified contributions made by 
such individual during any taxable year begin-
ning during such calendar year. 
(2) CARRYOVER.—The amount of any allotment 
to a State under paragraph (1)(A) for any calendar 
year which is not claimed by taxpayers described in 
VerDate Sep 11 2014 
23:18 Apr 22, 2025
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H2798.IH
H2798
kjohnson on DSK7ZCZBW3PROD with $$_JOB
such paragraph during such calendar year shall be 
added to the allotment provided under paragraph 
(1)(B) for the subsequent calendar year. 
(3) INCREASE IN NATIONWIDE VOLUME CAP.— 
For purposes of paragraph (1)(B), if the Secretary 
determines during any calendar year that the 
amount of tax credits allowable under section 25F 
with respect to qualified contributions made during 
such calendar year is equal to or greater than 90 
percent of the total amount made available under 
such paragraph for such calendar year, such amount 
shall be increased by an amount equal to 5 percent 
of the total amount made available under such para-
graph as of January 1 of such calendar year, with 
such increase to remain in effect for the subsequent 
calendar year. 
(b) FIRST-COME, FIRST-SERVE.—For purposes of 
applying the volume cap under this section, such volume 
cap shall be applied based on a first-come, first-serve 
basis, as determined based on the date on which the tax-
payer made the qualified contribution. 
(c) REAL-TIME INFORMATION.—For purposes of this 
section, the Secretary of the Treasury (or the Secretary’s 
delegate) shall develop a system to track the amount of 
qualified contributions made during the calendar year for 
VerDate Sep 11 2014 
23:18 Apr 22, 2025
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H2798.IH
H2798
kjohnson on DSK7ZCZBW3PROD with $$_JOB
which a credit may be claimed under section 25F of the 
Internal Revenue Code of 1986, with such information to 
be updated in real time. 
SEC. 5. ORGANIZATIONAL AND PARENTAL AUTONOMY. 
(a) PROHIBITION
OF CONTROL OVER ELIGIBLE 
CHARTER SCHOOL ORGANIZATIONS.— 
(1) IN GENERAL.—An eligible charter school or-
ganization shall not, by virtue of participation under 
any provision of this Act or any amendment made 
by this Act, be regarded as acting on behalf of any 
governmental entity. 
(2) MAXIMUM FREEDOM.—To the extent per-
missible by law, this Act, and any amendment made 
by this Act, shall be construed to allow eligible char-
ter school organizations maximum freedom to pro-
vide for the needs of the students served by the 
charter schools operated or managed by the organi-
zation without governmental control. 
(b) DEFINITIONS.—For purposes of this section, the 
terms ‘‘charter school’’ and ‘‘eligible charter school organi-
zation’’ shall have the same meanings given such terms 
under section 25F(c) of the Internal Revenue Code of 
1986 (as added by section 2(a) of this Act). 
VerDate Sep 11 2014 
23:18 Apr 22, 2025
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H2798.IH
H2798
kjohnson on DSK7ZCZBW3PROD with $$_JOB
SEC. 6. EFFECTIVE DATE. 
The amendments made by this Act shall apply to tax-
able years beginning after December 31, 2025. 
Æ 
VerDate Sep 11 2014 
23:18 Apr 22, 2025
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6301
E:\BILLS\H2798.IH
H2798
kjohnson on DSK7ZCZBW3PROD with $$_JOB