Individuals and high-income earners would be directly affected as they could reduce their federal income tax liability by making donations to approved scholarship organizations. This provides a financial incentive for them to contribute to K-12 education scholarships.

Families with incomes up to 300% of the area median gross income would be affected, as their children would become eligible to apply for these scholarships. This could provide them with more choices for elementary and secondary education, including private school options, homeschooling resources, or specific tutoring and therapy services, without incurring the full cost themselves. Scholarship Granting Organizations would also be affected, needing to comply with new federal requirements to receive and distribute these tax-credit eligible donations.