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Federal Scholarship Tax Credit

Find Your Path

Whether you're a taxpayer ready to give, a family seeking a scholarship, a governor considering opting in, or an SGO preparing for 2027 — we have the resources you need.

For Donors & Taxpayers

Turn Your Tax Dollars Into Opportunity

Starting January 1, 2027, you can receive a dollar-for-dollar federal income tax credit of up to $1,700 for donations to qualified Scholarship Granting Organizations. Your money doesn't reduce your tax bill — it replaces it, dollar for dollar.

Step 1

Find a Qualified SGO

Donate to any IRS-approved Scholarship Granting Organization in a state that has opted in to the program. You can give to SGOs in other states, not just your own.

Step 2

Make Your Donation

Contribute up to $1,700 per year (or more — only the first $1,700 qualifies for the credit). You can also give through employer payroll deductions, making it automatic and easy.

Step 3

Claim Your Tax Credit

When you file your federal taxes, claim the dollar-for-dollar credit on your return. $1,700 donated means $1,700 off your federal tax bill — not just a deduction, a full credit.

A Credit, Not a Deduction — What's the Difference?

A tax deduction reduces your taxable income. A tax credit directly reduces how much you owe. With the FSTC, a $1,700 donation results in a $1,700 reduction in your federal tax bill. For many donors, the net cost of giving is effectively zero.

The credit is permanent and uncapped at the federal level. There's no sunset date, no annual reauthorization needed.

Read the Full FAQ
$1,700
Max annual credit per donor
100%
Dollar-for-dollar federal tax credit
Jan 2027
Credit becomes effective
Permanent
No sunset — no annual reauth

Common Donor Questions

Yes. The law allows you to donate to any qualified SGO in any state that has opted in to the program — not just your home state. This means even if your state hasn't opted in, you can still take advantage of the credit.
You can donate as much as you'd like, but the federal tax credit is capped at $1,700 per individual per year. Amounts above that are not eligible for the federal credit, though some states may have their own state-level incentives as well.
Starting in 2027, employees can authorize payroll deductions that go directly to qualified SGOs. This makes giving automatic and reduces the upfront financial burden. Ask your HR or payroll department to set up FSTC contributions — or share our Employer Guide with them.
The credit is effective for donations made on or after January 1, 2027. The IRS is finalizing regulations (expected June 2026), and states are currently filing their opt-in elections. Sign up for updates to be notified as soon as the program is ready.
Each participating state submits a list of approved SGOs to the IRS as part of their opt-in process. The IRS will publish the official list of qualified organizations. We'll link directly to that list once it's available — sign up for updates to be notified.
Get Notified When It Launches Read the Full FAQ
For Families

Find the Right School for Your Child

The Federal Scholarship Tax Credit makes it possible for more families to access private schools, tutoring, charter schools, and more — by connecting them with scholarship-granting organizations funded by generous donors.

Your State Must Be Opted In

Scholarships are only available through SGOs in states that have opted in. 28 states have already done so — check the map on our homepage to see if yours is included.

K–12 Students

The FSTC covers K–12 scholarships. Eligible students can receive funds through approved SGOs in their state for qualified educational expenses.

Each SGO Sets Its Own Rules

Individual scholarship-granting organizations set their own eligibility criteria, including income thresholds, geographic limits, and educational priorities. Check with each SGO in your area.

What Can Scholarships Fund?

Private Schools

Charter Schools

Tutoring

Online Learning

How to Apply for a Scholarship

This process begins in 2027 when the program goes live. Here's what to expect.

1

Check if Your State Has Opted In

Use our interactive state map to see if your state is participating. If not, your elected officials can still file an opt-in — contact them and let them know you support this program.

2

Find Scholarship Organizations in Your State

Once your state opts in, a list of approved SGOs will be available through the IRS. We'll publish a searchable directory here as soon as that list is finalized.

3

Apply Directly to the SGO

Each SGO has its own application process, eligibility criteria, and scholarship amounts. Contact organizations in your area to learn about their requirements and deadlines.

4

Use Your Scholarship Starting January 2027

Scholarships funded by the FSTC take effect in the 2027 school year. Start exploring organizations in your area now so you're ready to apply when the program launches.

Check Your State Get Notified When Scholarships Open
For Governors & State Leaders

Join 28 States Already Opted In

The Federal Scholarship Tax Credit offers your state's families a once-in-a-generation opportunity — at no cost to your state budget. Here's everything you need to know about opting in.

28
States Already Opted In
$0
Net cost to state budgets
1
IRS form required to opt in
Jan '27
Program goes live nationwide

How to Opt In: The Process

1

File IRS Form 15714 — Advance Election to Participate

The Governor files Form 15714 with the IRS, signaling the state's intent to participate. States can begin filing beginning January 1, 2026.

2

Submit Your List of Approved SGOs

Alongside the election form, states submit a list of qualified Scholarship Granting Organizations they have approved to operate in the state.

3

IRS Publishes Your State's SGO List

The IRS publishes the approved list, making your state's SGOs eligible to receive federally-creditable donations. Donors in any state can then give to your SGOs.

4

Program Goes Live January 1, 2027

Donors begin contributing to your state's SGOs with the federal tax credit, and scholarships start flowing to eligible families. States can update their SGO lists annually.

Key Dates

July 2025

Signed Into Law

The Federal Scholarship Tax Credit was signed as part of HR1. This is the first-ever federal tax credit for scholarship donations.

Jan 1, 2026

Opt-In Window Opens

States can begin filing IRS Form 15714 and their list of approved SGOs. 28 states have already filed or are in the process of filing.

June 2026

IRS Final Regulations Expected

The IRS is expected to publish final regulations governing the program, providing full clarity on SGO requirements and donor eligibility.

Jan 1, 2027

Credits Become Effective

Donors can begin making federally-credited contributions. Scholarships flow to families. States that have not yet opted in can still file at any time.

Contact Our Policy Team Implementation FAQ
For Scholarship Granting Organizations

Prepare Your SGO for 2027

If your organization provides K–12 scholarships, you may qualify to become a federally-approved SGO — allowing donors to receive the new federal tax credit when they give to you. Here's what you need to know.

Eligibility Requirements

To qualify as a Scholarship Granting Organization under the FSTC, your organization must:

  • Be a 501(c)(3) nonprofit in good standing
  • Operate exclusively to provide K–12 scholarships
  • Be located in a state that has opted in
  • Comply with IRS regulations (final rules expected June 2026)
  • Be approved by your state and submitted to the IRS

Compliance & Reporting

Approved SGOs are expected to:

  • Maintain IRS Form 990 filing compliance
  • Report scholarship disbursements annually
  • Provide donor acknowledgment letters for credit purposes
  • Maintain records of student eligibility and scholarship awards
  • Comply with any state-level requirements for approved SGOs

Student Eligibility

Scholarships must go to eligible K–12 students. Individual SGOs may set their own income or geographic criteria within federal guidelines. Key considerations:

  • Scholarships for K–12 educational expenses only
  • SGOs may target specific income levels or regions
  • Allowable uses: tuition, tutoring, fees, educational materials
  • Each SGO sets its own application process

Receiving Donations

Once approved, donors can contribute to your SGO with the knowledge that their gift qualifies for the federal credit. Practical notes:

  • You must be on your state's official SGO submission to the IRS
  • Donors in any state can give to your organization
  • Payroll deduction contributions are also allowed
  • Issue standard donation receipts — credit is claimed on the donor's federal return

SGO Preparation Timeline

Now — Dec 2026

Confirm Your Nonprofit Status

Ensure your 501(c)(3) status is current and your IRS filings are up to date. Review your mission statement for alignment with scholarship-only requirements.

Now — Jun 2026

Contact Your State Education Agency

Connect with your state's education or revenue department to understand the state-level approval process. States are building their SGO lists now.

Jun 2026

Review IRS Final Regulations

The IRS is expected to publish final rules in June 2026. Review the regulations with your legal counsel to ensure your organization fully complies.

Late 2026

Get Listed & Start Fundraising

Once your state submits its SGO list to the IRS and you're confirmed as approved, begin outreach to donors. Let them know their contributions qualify for the federal credit.

Jan 1, 2027

Accept Federally-Credited Donations

The program goes live. Donors begin contributing with the federal credit. Scholarships flow to students. Your organization is making history.

Verified 501(c)(3) status in good standing
Mission aligned with K–12 scholarship focus
State has filed or is preparing to file Form 15714
Connected with state education/revenue agency
Form 990 filings current and compliant
Legal review of IRS final regulations scheduled
Connect With Our Team SGO FAQ

Stay Informed. Stay Ready.

Get updates as states opt in, IRS regulations are finalized, and the program prepares to launch.

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