Fiscal Impacts of an Oregon Tax Credit Scholarship Program
A Modest Tax Credit Scholarship Program Would Produce a Fiscal Net Benefit to Oregon State School Funding
The Florida Tax Credit Scholarship Program was established in 2001. It provides an income tax credit for corporations that contribute money to nonprofit scholarship-funding organizations (SFOs) that award scholarships to students from families with limited financial resources. The Florida legislature calculates that the program saved the state $36.2 million in fiscal year 2008-09.
If Oregon adopted a program similar to Florida’s, the benefits of reduced demands for education funding would exceed the costs of the tax credit, producing a net savings to the state of $7.7 million.