Advocacy for Indiana's K-12 Public Education

What is a Tax Credit?
A tax credit is different than a tax deduction. According to the IRS website, "tax credits provide a dollar-for-dollar reduction of your income tax liability. This means that a $1,000 tax credit saves you $1,000 in taxes. On the other hand, tax deductions lower your taxable income and they are equal to the percentage of your marginal tax bracket. For instance, if you are in the 25% tax bracket, a $1,000 deduction saves you $250 in tax.

A tax credit is always worth more than an dollar-equivalent tax deduction, because deductions are calculated using percentages. Referring to the numbers above, you can see that a $1,000 credit offers $750 more in savings than a $1,000 deduction."

Another explanation of the difference is offered on the Indiana Department of Revenue website.

How Would a Tax Credit Benefit Our Foundation?

Being able to offer tax credits could increase the donation amounts you receive and bring in new donors who are interested in lowering their income tax liability. There are donors who specifically seek tax credit opportunities because of the additional savings that they provide.


Background Information on How Tax Credits Can Benefit Education Foundations

Talking Points Regarding Proposed Tax Credit Legislation

Sample Email to Legislator Sharing Impact of Foundation on Students

Latest Work on Tax Credit Legislation

View a copy of the letter sent to Indiana state legislators in August 2018 to educate them on what public education foundations do and how they are helping local public school districts.

2019 General Assembly Information

Senate Bill 92

 - authored by Sen. John Ruckelshaus
Senate Bill 100
 - authored by Sen. Jon Ford
Senate Bill 368

 - authored by Sen. Ron Alting

House Bill 1133

 - authored by Rep. Carey Hamilton

Find Your Local Legislator/Contact Information

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1809 Woodfield Dr.

Greenwood, IN 46143

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