Red state charities could be collateral damage from the GOP's war on California's high taxes
WASHINGTON - The Alabama Opportunity Scholarship Fund has helped 5,000 low-income children since starting in 2013, but its days could be numbered because of a partisan fight over state-and-local tax deductions prompted by the GOP tax overhaul.
Money for the fund, which provides annual scholarships averaging $6,000 to attend a private K-through-12th-grade school or a public one outside of a student's district, is raised through a tax incentive.
Contributions receive a dollar-for-dollar state tax credit and are fully deductible from the donor's federal income taxes. Now, the future of that federal deduction is at risk.
The program is among more than 100 charitable tax-credit programs in dozens of states - including red ones such as Alabama, Georgia, South Carolina and Louisiana - that could be collateral damage
