NORTON RAINEY: The Best-Kept Secret In This Year’s Tax Cut

This Tax Day, families shouldn’t just think about how much they will get back. They should also know about an opportunity that could change their child’s future trajectory.

In the years ahead, filing taxes may start to feel very different for taxpayers and parents.

The Working Families Tax Cut, which prevented the largest tax hike in American history, means Americans will keep more of what they earn. Many working families can expect an average refund of $3,700 this year – an immediate and much-needed boost to household finances.

But tucked inside this tax relief package is something far more transformative, something most families have yet to hear about.

The Education Freedom Tax Credit, a provision allowing taxpayers to direct a portion of what they owe, up to $1,700 toward scholarships for students, may be the best-kept secret in this entire bill. That’s what makes it so significant, and why it won’t remain behind the scenes for long.

At a time when families are squeezed by rising costs, from groceries and energy bills to housing and childcare, education has quietly become one of the most significant and most overlooked expenses. Many parents feel constrained by a one-size-fits-all system that assigns a child’s future based on their ZIP code. It’s no surprise that more families are searching for alternatives.

Today, more than 1.5 million students and families nationwide benefit from some form of educational choice – whether through private schools, charter schools, or hybrid learning environments. But access to those options has never been equal. For decades, wealthier families have exercised choice with ease, while lower- and middle-income families have been left with limited options.

The Education Freedom Tax Credit is designed to help level access to a quality education.

Officially launching in 2027, the credit will incentivize private donations to Scholarship Granting Organizations, which then provide scholarships directly to families. Those scholarships help families afford a wide range of educational opportunities, from tuition to tutoring to specialized learning services giving parents the flexibility to choose what works best for their child.

Instead of expanding bureaucracy, this is a simple but powerful idea: empower families by moving dollars directly into their hands. For many parents, opportunity will finally be met with real relief.

Two months in, Florida’s robust K-12 school choice program hit a record 500,000 applications, signaling unprecedented demand. In Tennessee, lawmakers recently expanded their state program, yet a record 56,000 students applied, outpacing available funding. These are just a couple of examples of the growing demand for school choice across the United States.

This year alone, ACE Scholarships had to turn away more than 9,000 lower-income students simply because funding fell short. By unlocking private donations through the tax code, this provision could unlock $24 million annually in scholarship funding, dramatically expanding access for families across the country who need it most.

Students who benefit from school choice are more engaged, more confident, and more hopeful about their futures. The results speak for themselves: students persist and graduate at higher rates, and go on to college, the military, and the trades. These outcomes demonstrate the real, tangible impact of what’s possible when families are empowered.

Momentum is already building. Governors across the country now have the option to opt their state into the program, and many – including leaders from both parties – have already signaled their intent to participate. For those still on the fence, the choice is clear: bring millions in new education resources into your state or leave thousands of families without options.

This Tax Day, the conversation shouldn’t be just about how much families get back, but what they can do with it.

The Education Freedom Tax Credit represents a smarter kind of tax relief, one that doesn’t just ease financial pressure, but opens doors for the next generation.

This isn’t just a tax package that saves you money. It’s one that will soon give your child a better future.

Norton Rainey is the CEO of ACE Scholarships.

 The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.

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