Education advocates urge Whitmer to decline federal tax credit for scholarships

Education advocates in Michigan urged Gov. Gretchen Whitmer Thursday to decline participation in a new federal tax credit for scholarship donations. The credit, which would begin next year, allows donors to receive up to $1,700 for K‑12 scholarships. Families eligible for the credit must earn at or below 300% of the area's median gross income, according to State Board of Education President Pamela Pugh, who said most scholarship programs are private and that the credit would likely benefit those schools.

Pugh argued that the tax credit is a voucher program that could shift funds from public to private schools, and that public schools would need to charge fees for services not mandated by state law to benefit. The Michigan Education Association opposed the program, saying public schools would receive little of the scholarship funds. Gov. Whitmer said she is waiting for full guidance from the U.S. Treasury before deciding.

Republican gubernatorial candidate John James and Democratic secretary of state Jocelyn Benson have both expressed support for the credit, with James calling it a priority and Benson calling for transparency. In June, the IRS reported that more than half of states had opted in to the program, giving Michigan a chance to join the federal initiative.

Read the full story at michiganpublic.org.