This bill creates a new federal tax credit that rewards people and businesses for donating money to nonprofit scholarship organizations that help lower-income students pay for education. Here's how it works: If you donate to a qualifying scholarship organization, you can claim a tax credit (a direct reduction in taxes owed) up to either 10% of your income or $5,000, whichever is greater. Corporations can claim a credit worth up to 5% of their taxable income. The scholarships funded by these donations can be used for tuition, books, tutoring, test fees, and other education expenses at public schools, private schools, religious schools, or homeschools. To qualify for a scholarship, a student's family income must be no more than 300% of the area median income—essentially targeting middle and lower-income families. The bill includes safeguards: scholarship organizations must distribute nearly all donations as scholarships within a reasonable timeframe, undergo annual audits, verify student eligibility, and cannot favor particular students or schools. The program has a $10 billion annual spending cap that grows if heavily used, with 10% of funds reserved for each state. Importantly, the bill explicitly protects religious schools and private schools from discrimination and prevents government agencies from controlling how scholarship organizations operate.