Senate Pro Tempore Phil Berger announced plans to introduce implementing legislation tied to the federal school choice tax credit included in H.R.1 One Big Beautiful Bill Act signed into law by President Trump on July 4.

The new federal credit offers taxpayers a dollar-for-dollar reduction of up to $1,700 for donations to nonprofit Scholarship-Granting Organizations (SGOs), which in turn issue scholarships to students for private school expenses. The program, set to begin in 2027, requires states to opt-in and allows families earning up to three times the area median income to qualify for scholarships.

According to the new law, states must decide by January 1 each year to participate and transmit the list of qualified SGOs to the federal government. Additionally, the selection of SGOs is to be made “by the Governor of the state or by another individual, agency, or entity designated under state law to make such elections on behalf of the state with respect to federal tax benefits.”

It’s unclear how the program would interact with the Opportunity Scholarship Program here in North Carolina, which already invests over $600 million in state dollars annually for private school scholarships.

See How school choice expansion will work in NC | The North State Journal for more details about implementation plans.