Press Release: New Tax Credit Bill Enhances Educational Opportunities for Alaskan Families
Anchorage, AK – The Great Big Beautiful Bill, recently passed, is set to significantly improve access to private education for low- and middle-income families across Alaska. The legislation enables taxpayers to redirect $1,700 annually in tax credits to Scholarship Granting Organizations (SGOs), facilitating private school scholarships instead of sending those funds to the federal government.
This initiative aims to assist families earning below 300% of the local median income, which in Anchorage is approximately $290,000 per year. For the state overall, the average threshold to qualify for scholarships hovers around $270,000.
The potential impact of this bill is substantial. If just 25% of federal taxpayers in Alaska utilize the $1,700 tax credit, approximately $137 million could be diverted to SGOs. This could ultimately support around 19,600 scholarships, each worth $7,000. As many as 5,080 current private school students may qualify, alongside an additional 15,000 students who could access scholarships at this level, if families choose private education over traditional public schools.
Moreover, should these 15,000 students transition from public schools, the state could save an estimated $213 million per year in educational expenses, alleviating pressure on Alaska’s Permanent Fund Dividends (PFDs). This shift would foster competition, encouraging public schools to innovate and enhance their offerings to retain students.
In conclusion, the Great Big Beautiful Bill presents a unique opportunity for Alaskan families to secure better educational options while incentivizing public schools to improve quality and satisfaction among parents.
Bob Griffin, a member of the Alaska Policy Forum board and former member of the Alaska Board of Education and Early Development, emphasizes the positive outcomes of this legislation for both families and schools.
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Photo credit mustreadalaska.com
