# Plain Language Summary: High-Quality Charter Schools Act

This bill creates a new tax credit that gives individuals a financial incentive to donate money to charter schools. If you donate to an eligible charter school organization, you can claim a tax credit worth 75 percent of your donation amount. This means if you donate $1,000, you could reduce your taxes by $750. The credit is capped at either 10 percent of your income or $5,000 per year, whichever is larger. Importantly, you can't claim both this tax credit and the regular charitable deduction for the same donation—you have to choose one or the other.

Not every charter school qualifies for this program. Only organizations that meet specific criteria can accept donations that trigger the credit. These include nonprofits that either received federal grants for expanding high-quality charter schools or were identified by their state as being in the top 10 percent of charter schools for student performance. The organizations must also keep detailed financial records, get annual independent audits, and maintain separate accounting for these donated funds. If a charter school organization fails to spend the money it receives within five years (with some flexibility for administrative costs and planning), donors won't be able to claim the credit for future donations to that organization.

The program has a spending limit of $5 billion per year in tax credits starting in 2026. Each state gets $10 million allocated first, and any unused state allocation rolls over to a national pool. Once 90 percent of the available credits are claimed, the pool automatically increases by 5 percent. Credits are awarded on a first-come, first-served basis based on when donations are made, and the Treasury Department will maintain a real-time tracking system so people know when the limit is reached. The bill also includes language stating that charter school organizations receiving these donations remain independent from government control and should have maximum freedom in how they operate.