Federal Scholarship Tax Credit: Scholarships for Students

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Federal Scholarship Tax Credit: Scholarships for Students

The Federal Scholarship Tax Credit (FSTC) program established by the One Big Beautiful Bill Act in July of 2025 is designed to fund scholarships for K-12 students across the country. Any taxpayer can make a donation of up to $1,700 ($3,400 for a married couple filing jointly) to an approved Scholarship Granting Organization (SGO) and claim a dollar-for-dollar tax credit when they file their federal taxes. Check out our taxpayer federal credit explainer for more information!

Approved SGOs take the funds donated through the FSTC program and provide scholarships to eligible children for qualified educational expenses. Families interested in receiving a scholarship will need to find an approved SGO in their state and complete that specific SGO’s application process.

Frequently Asked Questions

Currently, 31 states have indicated they will opt in to participate in the Federal Scholarship Tax Credit program.

Each participating state will submit a list of approved Scholarship Granting Organizations (SGOs) to the Treasury Department annually, and the Treasury Department will maintain a list of all approved SGOs on irs.gov.

Stay tuned – we’ll let you know when the list becomes available!

Students are eligible to receive scholarship funded through federal tax credit donations if they:

  • are eligible to enroll in a public elementary or secondary school
  • have a household income less than 300% of the median income for their area

Students who are in foster care are eligible to receive a scholarship regardless of income verification.

Not sure if you meet the income requirement? You can look up your area median income here. Household income, for the purposes of this program, refers to incoming cash sources including child support and alimony. The income eligibility will be adjusted for family size based on HUD guidelines, and the IRS anticipates publishing further guidance – stay tuned.

As an example, if you live in an area where the gross median income is $100,000 you are eligible to receive a scholarship if your household earns less than $300,00.

For families who share custody of their children, the relevant household income is the one where the student spends the majority of their time during the year. If time is shared equally between two households, the household of the taxpayer with the highest household income would be used to determine eligibility.

SGOs are required to award scholarships first to students who have previously received a scholarship, then to previous recipients’ siblings, and then any remaining funds can be awarded to other qualifying students.

There are two household income verification methods SGOs can use that would require families to turn in paperwork: direct verification, categorical verification, or a safe harbor qualification .

Direct verification includes a review of written documentation that demonstrates household income. This includes documentation such as pay stubs, the previous year Federal or State tax returns, IRS transcripts, and W-2 forms.

Categorical verification includes a review of written documentation, such as an award letter, dated within the last 12 months documenting that an individual in the student’s household is approved for assistance from or participation in one of the following programs:

  • Supplemental Nutrition Assistance Program (SNAP)
  • Temporary Assistance for Needy Families (TANF)
  • Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)
  • Section 8 housing
  • Supplemental Security Income (SSI)

The SGO you apply to will let you know exactly what you need to to do prove your household income.

Each individual SGO has their own application process – the best place to find out how to apply is an SGO’s website!

State’s participating in the Federal Scholarship Tax Credit Program are required to turn in a list of approved SGOs annually to the Treasury Department. The Treasury Department will then maintain a list of approved SGOs on irs.gov.

The deadline for submitting an approved list of SGOs for this first year is February 15, 2027. We’ll share this list as soon as it’s available!

Each state participating in the Federal Scholarship Tax Credit program must submit a list of approved SGOs annually to the Treasury Department. The Treasury will then publish a list of approved SGOs on irs.gov.

The deadline for this year is February 15, 2027, stay tuned and we’ll share the list once it’s available!

There is no cap on the scholarship amounts funded through these donations. Each scholarship granting organization (SGO) awarding scholarships sets the dollar amount for the scholarships they award. The only limitation is that no family can get a scholarship covering the same educational expense from two different SGOs.

Families who receive scholarships funded by the federal tax credit program can use the funds for qualifying expenses at a public, private, or religious school such as:

  • Tuition, fees, books, supplies, and other equipment
  • Academic tutoring
  • Special needs services
  • Room and board, uniforms, transportation, and supplementary items and services
  • Computer technology, equipment, or internet access and related services

The Treasury Department is still developing guidance regarding qualified expenses, stay tuned for more information.

No. Scholarship recipients can use their funds to support their education at public, private, or religious elementary or secondary schools.

Unlike many state tax credit scholarship programs, the scholarships provided under the  Federal Scholarship Tax Credit program are not limited to supporting enrollment or attendance at private schools.

While exact definitions have not been released yet, the proposed rules define “school” consistent with State law.

In plain language, this means that if your state treats a homeschool as a private school scholarship funds can be put toward those expenses. Under this definition, homeschoolers in 22 states are eligible to participate in this program. Check the state dropdown on this page to see if your state is one of them.

No. Under the law, the scholarships are considered tax-free income for the recipients and their families.

Yes! It is possible to participate in both the Federal Scholarship Tax Credit program and your State Tax Credit program.

Students who are dependents of a member of the Armed Forces qualify for an exemption for the residency rule of the Federal Scholarship Tax Credit program. In general, eligibility is determined based on the state the student resides in.

For military families, students are treated as a resident of both the State in which the student is domiciled and the location where the member of the Armed Forces resides.

Students who are dependents of an individual residing on Indian Lands qualify for an exemption for the residency rule of the Federal Scholarship Tax Credit program. In general, eligibility is determined based on the state the student resides in.

For students with families living on Indian Lands, students are treated as a resident of both the State of the student’s residence and the State in which the student attends school.

In Your State

Governor Kay Ivey has indicated she will opt the state of Alabama into the Federal Scholarship Tax Credit program through an executive order in January of 2026. 

What does this mean for Alabamians? Starting in January of 2027 taxpayers in Alabama can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Stay tuned for a list of approved SGOs!

Alabama also has multiple state education funding opportunities in the form of a tax credit scholarship, a refundable tax credit, and an education savings account. For more information visit Alabama’s State Roadmap.

Governor Mike Dunleavy has indicated that he will be opting the state of Alaska into the program in January of 2026. 

What does this mean for Alaskans? Starting in January of 2027 taxpayers in Alaska can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

The Governor approved the state’s first 20 SGOs on October 2, 2026, and plans to submit a final 2027 SGO list to the IRS in early December. The list of the initial 20 SGOs is available here.

Alaska does not have any state-run scholarship programs at this time. For more information about all the education options available to Alaskan families, visit Alaska’s State Roadmap.

Arizona has not yet made a decision about its participation in the Federal Scholarship Tax Credit program. 

If the state chooses not to participate in the program, families won’t be eligible for a FSTC scholarship. They can still receive the tax credit by donating to an approved SGO in another state. Stay tuned for a list of approved SGOs!

Arizona also has multiple state education funding opportunities in the form of tax credit scholarships and an education savings account. For more information visit Arizona’s State Roadmap.

Governor Sarah Huckabee Sanders opted the state of Arkansas into the Federal Scholarship Tax Credit program through an executive order in January of 2026. 

What does this mean for Arkansans? Starting in January of 2027 taxpayers in Arkansas can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Stay tuned for a list of approved SGOs!

Arkansas also has multiple state education funding opportunities in the form of a tax credit scholarship and an education savings account. For more information visit Arkansas’ State Roadmap.

California has not yet made a decision about its participation in the Federal Scholarship Tax Credit program. 

If the state chooses not to participate in the program, families won’t be eligible for a FSTC scholarship. They can still receive the tax credit by donating to an approved SGO in another state. Stay tuned for a list of approved SGOs!

California does not have any state-run scholarship programs at this time. For more information about all the education options available to California families, visit California’s State Roadmap

Colorado Governor Jared Polis announced in December of 2025 that he plans to opt Colorado into the Federal Scholarship Tax Credit program. 

What does this mean for Coloradans? Starting in January of 2027 taxpayers in Colorado can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Stay tuned for a list of approved SGOs!

Colorado does not have any state-run scholarship programs at this time. For more information about all the education options available to Colorado families, visit Colorado’s State Roadmap

Connecticut has not yet made a decision about its participation in the Federal Scholarship Tax Credit program. 

If the state chooses not to participate in the program, families won’t be eligible for a FSTC scholarship. They can still receive the tax credit by donating to an approved SGO in another state. Stay tuned for a list of approved SGOs!

The School + State Finance Project released a FAQ document regarding the federal tax credit program and what that means for the state of Connecticut.

Connecticut does not have any state-run scholarship programs at this time. For more information about all the education options available to Connecticut families, visit Connecticut’s State Roadmap.

Delaware has not yet made a decision about its participation in the Federal Scholarship Tax Credit program. 

If the state chooses not to participate in the program, families won’t be eligible for a FSTC scholarship. They can still receive the tax credit by donating to an approved SGO in another state. Stay tuned for a list of approved SGOs!

Delaware does not have any state-run scholarship programs at this time. For more information about all the education options available to Delaware families, visit Delaware’s State Roadmap.

D.C. has not yet made a decision about its participation in the Federal Scholarship Tax Credit program. 

If the state chooses not to participate in the program, families won’t be eligible for a FSTC scholarship. They can still receive the tax credit by donating to an approved SGO in another state. Stay tuned for a list of approved SGOs!

The District of Columbia also has a state funding opportunity in the form of a scholarship program. For more information visit DC’s State Roadmap.

Governor Ron DeSantis announced at the end of January 2026 that he plans on opting Florida into the Federal Scholarship Tax Credit program. 

What does this mean for Floridians? Starting in January of 2027 taxpayers in Florida can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Stay tuned for a list of approved SGOs!

Florida also has multiple state education funding opportunities in the form of specific scholarship programs and an education savings account. For more information visit Florida’s State Roadmap.

Governor Brian Kemp announced in January of 2026 that he is opting the state of Georgia into the Federal Scholarship Tax Credit program. 

What does this mean for Georgians? Starting in January of 2027 taxpayers in Georgia can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Stay tuned for a list of approved SGOs!

Georgia also has multiple state education funding opportunities in the form of a tax credit, a scholarship for students with disabilities, and an education savings account. For more information visit Georgia’s State Roadmap

Governor Josh Green’s office told EdWeek that he is not opting Hawaii into the Federal Tax Credit program in January of 2026; however, no official decision has been made.

If Hawaii chooses not to participate in the program, families won’t be eligible for a FSTC scholarship. They can still receive the tax credit by donating to an approved SGO in another state. Stay tuned for a list of approved SGOs!

Hawaii does not have any state-run scholarship programs at this time. For more information about all the education options available to Hawaiian families, visit Hawaii’s State Roadmap.

A spokesperson for Governor Brad Little shared in January of 2026 that the governor plans to opt Idaho into the Federal Scholarship Tax Credit program through an executive order. 

What does this mean for Idahoans? Starting in January of 2027 taxpayers in Idaho can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Stay tuned for a list of approved SGOs!

Idaho also has a state education funding opportunity in the form of a refundable income tax credit. For more information visit Idaho’s State Roadmap.

Illinois has not yet made a decision about its participation in the Federal Scholarship Tax Credit program. 

If the state chooses not to participate in the program, families won’t be eligible for a FSTC scholarship. They can still receive the tax credit by donating to an approved SGO in another state. Stay tuned for a list of approved SGOs!

Illinois also has state education funding opportunities in the form of scholarships for students who reside in Chicago and savings accounts for students with disabilities. For more information visit Illinois’ State Roadmap.

Governor Mike Braun announced in January of 2026 that he is opting Indiana into the Federal Scholarship Tax Credit program.

What does this mean for Hoosiers? Starting in January of 2027 taxpayers in Indiana can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Stay tuned for a list of approved SGOs!

Indiana also has state education funding opportunities in the form of a voucher program, an education savings account program, tax deductions, and a tax-credit scholarship program.. For more information visit Indiana’s State Roadmap.

Governor Kim Reynolds announced in January of 2026 that she will opt Iowa into the Federal Scholarship Tax Credit program.

What does this mean for Iowans? Starting in January of 2027 taxpayers in Iowa can donate to an approved scholarship granting organization (SGO) and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Stay tuned for a list of approved SGOs!

Iowa also has state education funding opportunities in the form of an education savings account program, a tax deduction for nonpublic school expenses, and a school tuition tax credit. For more information visit Iowa’s State Roadmap.

Gov. Laura Kelly vetoed legislation opting Kansas into the Federal Tax Credit Program and lawmakers overrode the veto in April of 2026, bringing Kansas into the program. 

What does this mean for Kansans? Starting in January of 2027 taxpayers in Kansas can donate to an approved scholarship granting organization (SGO) and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Stay tuned for a list of approved SGOs!

Kansas also has a state tax credit scholarship program, the Tax Credit for Low Income Students Scholarship Program. For more information visit Kansas’s State Roadmap.

The Kentucky legislature overrode Gov. Andy Beshear’s veto and have passed legislation that opts Kentucky into the Federal Tax Credit Program.

What does this mean for Kentuckians? Starting in January of 2027 taxpayers in Kentucky can donate to an approved scholarship granting organization (SGO) and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Stay tuned for a list of approved SGOs!

Kentucky does not have any state-run scholarship programs at this time. For more information about all the education options available to Kentucky families, visit Kentucky’s State Roadmap.

Governor Jeff Landry stated in December of 2025 that he will opt Louisiana into the Federal Scholarship Tax Credit program.

What does this mean for Louisianians? Starting in January of 2027 taxpayers in Louisiana can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Stay tuned for a list of approved SGOs!

Louisiana also has state funding opportunities in the form of tax deductions, a tax-credit scholarship, vouchers for students with special needs, and an education savings account program. For more information about the education options available to Louisiana families, visit Louisiana’s State Roadmap.

Maine has not yet made a decision about its participation in the Federal Scholarship Tax Credit program. 

If the state chooses not to participate in the program, families won’t be eligible for a FSTC scholarship. They can still receive the tax credit by donating to an approved SGO in another state. Stay tuned for a list of approved SGOs!

Maine also has a state funding opportunity – the Town Tuitioning Program. For more information about the education options available to Maine families, visit Maine’s State Roadmap.

Maryland has not yet made a decision about its participation in the Federal Scholarship Tax Credit program. 

If the state chooses not to participate in the program, families won’t be eligible for a FSTC scholarship. They can still receive the tax credit by donating to an approved SGO in another state. Stay tuned for a list of approved SGOs!

Maryland also has a state funding opportunity, the Broadening Options and Opportunities for Students Today (BOOST) program. For more information about the educational options available to Maryland families, visit Maryland’s State Roadmap.

Massachusetts has not yet made a decision about its participation in the Federal Scholarship Tax Credit program. 

If the state chooses not to participate in the program, families won’t be eligible for a FSTC scholarship. They can still receive the tax credit by donating to an approved SGO in another state. Stay tuned for a list of approved SGOs!

Massachusetts does not have any state run funding opportunities at this time. For more information on the educational opportunities for Massachusetts families visit Massachusetts’ State Roadmap.

Michigan has not yet made a decision about its participation in the Federal Scholarship Tax Credit program. 

If the state chooses not to participate in the program, families won’t be eligible for a FSTC scholarship. They can still receive the tax credit by donating to an approved SGO in another state. Stay tuned for a list of approved SGOs!

Michigan does not have any state run funding opportunities at this time. For more information on the educational opportunities for Michigan families visit Michigan’s’ State Roadmap.

Minnesota Governor Tim Walz has indicated that he will not opt the state into the Federal Tax Credit Program.

If the state chooses not to participate in the program, families won’t be eligible for a FSTC scholarship. They can still receive the tax credit by donating to an approved SGO in another state. Stay tuned for a list of approved SGOs!

Minnesota also has two state education funding opportunities in the form of a refundable tax credit and a tax deduction. For more information about the educational opportunities available to Minnesota families visit the Minnesota’s State Roadmap.

Governor Tate Reeves announced in January of 2026 that he will opt Mississippi into the Federal Scholarship Tax Credit program.

What does this mean for Mississippians? Starting in January of 2027 taxpayers in Mississippi can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Stay tuned for a list of approved SGOs!

Mississippi also has several state-run scholarship programs helping families with special needs gain access to private schools. For more information about the educational opportunities available to Mississippi families, visit the Mississippi State Roadmap.

Governor Mike Kehoe announced in his 2026 State of the State address that he will opt Missouri into the Federal Scholarship Tax Credit program.

What does this mean for Missourians? Starting in January of 2027 taxpayers in Missouri can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Stay tuned for a list of approved SGOs!

Missouri also has a state-run education savings account program to help families with educational expenses. For more information about the educational opportunities available to Missouri families, visit the Missouri State Roadmap.

Governor Greg Gianforte stated that he had opted Montana into the Federal Scholarship Tax Credit program in January of 2026.

What does this mean for Montanans? Starting in January of 2027 taxpayers in Montana can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Stay tuned for a list of approved SGOs!

Montana also has a state-run education program in the form of a tax-credit scholarship. For more information about the educational opportunities available to Montana families, visit the Montana State Roadmap.

Governor Jim Pillen signed an executive order in September of 2025 indicating the state’s intent to opt into the Federal Scholarship Tax Credit program.

What does this mean for Nebraskans? Starting in January of 2027 taxpayers in Nebraska can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Stay tuned for a list of approved SGOs!

Nebraska does not currently have a state-run scholarship program. For more information about the educational options available to Nebraska families, visit the Nebraska State Roadmap.

Governor Joe Lombardo stated in January of 2026 that Nevada is opting into the Federal Scholarship Tax Credit program.

What does this mean for Nevadans? Starting in January of 2027 taxpayers in Nevada can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Stay tuned for a list of approved SGOs!

Nevada also has a state-run scholarship program in the form of a tax-credit scholarship. For more information about the educational opportunities available to Nevada families, visit the Nevada State Roadmap.

Governor Kelly Ayotte announced in January of 2026 that New Hampshire is opting into the Federal Scholarship Tax Credit program.

What does this mean for New Hampshirites? Starting in January of 2027 taxpayers in New Hampshire can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Stay tuned for a list of approved SGOs!

New Hampshire also offers several state-run education funding programs in the form of an education savings account, a voucher program, and a tax-credit scholarship. For more information about the educational options available to New Hampshire families, visit New Hampshire’s State Roadmap.

New Jersey has not yet made a decision about its participation in the Federal Scholarship Tax Credit program. 

If the state chooses not to participate in the program, families won’t be eligible for a FSTC scholarship. They can still receive the tax credit by donating to an approved SGO in another state. Stay tuned for a list of approved SGOs!

New Jersey does not currently have any state-run funding opportunities. For more information on all the educational options available to New Jersey families, visit New Jersey’s State Roadmap.

New Mexico has not yet made a decision about its participation in the Federal Scholarship Tax Credit program.

If the state chooses not to participate in the program, families can still receive the tax credit by donating to an approved SGO in another state. Stay tuned for a list of approved SGOs!

New Mexico does not currently have any state-run funding opportunities. For more information on the educational options available to New Mexico families, visit New Mexico’s State Roadmap.

New York Governor Kathy Hochul indicated in May of 2026 that she intends to opt New York into the Federal Scholarship Tax Credit program.

What does this mean for New Yorkers? Starting in January of 2027 taxpayers in New York can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Stay tuned for a list of approved SGOs!

New York does not currently have any state-run education funding opportunities. For more information on the education opportunities available to New York families, visit New York’s State Roadmap.

Legislators in North Carolina enrolled the state into the Federal Scholarship Tax Credit program through a vote to override Gov. Josh Stein’s veto.

What does this mean for North Carolinians? Starting in January of 2027 taxpayers in North Carolina can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Stay tuned for a list of approved SGOs!

North Carolina also has a state-run scholarship program in the form of a voucher program. For more information about the educational opportunities available to North Carolina families, visit the North Carolina State Roadmap.

Governor Kelly Armstrong stated in January of 2026 that North Dakota will participate in the Federal Scholarship Tax Credit program.

What does this mean for North Dakotans? Starting in January of 2027 taxpayers in North Dakota can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Stay tuned for a list of approved SGOs!

North Dakota does not currently have any state run education funding opportunities. For more information on the educational options available to North Dakota families, visit North Dakota’s State Roadmap.

Governor Mike DeWine has opted Ohio into the Federal Scholarship Tax Credit program.

What does this mean for Ohioans? Starting in January of 2027 taxpayers in Ohio can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Stay tuned for a list of approved SGOs!

Ohio also has several state-run funding programs in the forms of scholarships and tax-credits. For more information about the educational opportunities available to Ohio families, visit the Ohio State Roadmap.

Governor Kevin Stitt has opted Oklahoma into the Federal Scholarship Tax Credit program.

What does this mean for Oklahomans? Starting in January of 2027 taxpayers in Oklahoma can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Stay tuned for a list of approved SGOs!

Oklahoma also has several state-run programs available to families in the form of a voucher and tax-credit scholarships. For more information on the education options available to Oklahoma families, visit the Oklahoma State Roadmap.

In August of 2025 a spokesperson for Governor Tina Kotek stated that Oregon will not participate in the Federal Scholarship Tax Credit program.

If the state chooses not to participate in the program, families won’t be eligible for a FSTC scholarship. They can still receive the tax credit by donating to an approved SGO in another state. Stay tuned for a list of approved SGOs!

Oregon does not currently have any state-run education funding opportunities. For more information about the educational opportunities available to Oregon families, visit the Oregon State Roadmap.

Pennsylvania has not yet made a decision about its participation in the Federal Scholarship Tax Credit program. 

If the state chooses not to participate in the program, families won’t be eligible for a FSTC scholarship. They can still receive the tax credit by donating to an approved SGO in another state. Stay tuned for a list of approved SGOs!

Pennsylvania has a state-run funding program in the form of a tax-credit scholarship. For more information about the educational options available for Pennsylvania families, visit the Pennsylvania State Roadmap.

Rhode Island has not yet made a decision about its participation in the Federal Scholarship Tax Credit program. 

If the state chooses not to participate in the program, families won’t be eligible for a FSTC scholarship. They can still receive the tax credit by donating to an approved SGO in another state. Stay tuned for a list of approved SGOs!

Rhode Island does not currently have any state-run educational funding programs. For more information about the educational opportunities available to Rhode Island families, visit the Rhode Island State Roadmap.

A spokesperson for Governor Henry McMaster stated in January of 2026 that the governor has opted South Carolina into the  Education Freedom Tax Credit.

What does this mean for South Carolinians? Starting in January of 2027 taxpayers in South Carolina can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

South Carolina has several state-run funding programs available to families in the form of an educational savings account, a refundable tax credit, and a tax-credit scholarship. For more information about the educational options available to South Carolina families, visit the South Carolina State Roadmap.

Governor Larry Rhoden announced that South Dakota will participate in the federal education tax credit program in November of 2025.

What does this mean for South Dakotans? Starting in January of 2027 taxpayers in South Dakota can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

South Dakota has a state-run funding program available for families in the form of a tax-credit scholarship. For more information about the educational options available to South Dakota families, visit the South Dakota State Roadmap.

Tennessee Governor Bill Lee has indicated that he will opt the state into the federal education tax credit scholarship program. 

What does this mean for Tennesseans? Starting in January of 2027 taxpayers in Tennessee can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Tennessee has multiple state-run education funding programs for students in the form of education savings accounts. For more information about the educational options available to Tennessee families, visit the Tennessee State Roadmap.

In December of 2025 Governor Greg Abbott announced that Texas intends to opt into the Federal Scholarship Tax Credit program. 

What does this mean for Texans? Starting in January of 2027 taxpayers in Texas can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Texas has an educational funding program available to families in the form of an education savings account. For more information about the educational options available to Texas families, visit the Texas State Roadmap.

Governor Spencer Cox stated in January of 2026 that Utah is opting into the Federal Scholarship Tax Credit program.

What does this mean for Utahns? Starting in January of 2027 taxpayers in Utah can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Utah has multiple state-run education funding programs in the form of an education savings account and a tax-credit ESA. For more information about the educational opportunities available to Utah families, visit the Utah State Roadmap.

Vermont has not yet made a decision about its participation in the Federal Scholarship Tax Credit program. 

If the state chooses not to participate in the program, families won’t be eligible for a FSTC scholarship. They can still receive the tax credit by donating to an approved SGO in another state. Stay tuned for a list of approved SGOs!

Vermont offers education funding through a voucher program. For more information about the educational options available to Vermont families, visit the Vermont State Roadmap.

Governor Glenn Youngkin stated in January of 2026 that Virginia has opted into the Federal Scholarship Tax Credit program.

What does this mean for Virginians? Starting in January of 2027 taxpayers in Virginia can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Virginia offers a state-run education funding program in the form of a tax-credit scholarship. For more information about the education opportunities in Virginia, visit the Virginia State Roadmap.

Washington has not yet made a decision about its participation in the Federal Scholarship Tax Credit program. 

If the state chooses not to participate in the program, families won’t be eligible for a FSTC scholarship. They can still receive the tax credit by donating to an approved SGO in another state. Stay tuned for a list of approved SGOs!

Washington does not currently have any state-run educational funding programs. For more information about the educational opportunities available to Washington families, visit the Rhode Island State Roadmap.

Governor Patrick Morrisey has opted West Virginia into the Federal Scholarship Tax Credit program.

What does this mean for West Virginians? Starting in January of 2027 taxpayers in West Virginia can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

West Virginia has a state-run education funding program in the form of an education savings account. For more information about the educational opportunities for West Virginia families, visit the West Virginia State Roadmap.

Governor Tony Evers vetoed a bill that would have opted Wisconsin into the Federal Scholarship Tax Credit program.

If the state chooses not to participate in the program, families won’t be eligible for a FSTC scholarship. They can still receive the tax credit by donating to an approved SGO in another state. Stay tuned for a list of approved SGOs!

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Wisconsin has several state run education funding programs in the form of a tax credit/deduction and several voucher programs. For more information about the educational opportunities available to Wisconsin families, visit the Wisconsin State Roadmap.

Governor Mark Gordon has opted Wyoming into the Federal Scholarship Tax Credit program.

What does this mean for Wyoming residents? Starting in January of 2027 taxpayers in Wyoming can donate to an approved SGO and claim up to a $1,700 tax credit when they file their 2027 federal taxes. 

Each SGO will then set their own scholarship rules, regulations, and application processes for awarding scholarships to eligible students using the donated funds. 

Wyoming has an education funding program in the form of an education savings account. For more information about the educational opportunities available to Wyoming families, visit the Wyoming State Roadmap.

More Information:

Looking for more information about the education options or funding opportunities available to your family? Check out these resources:

Find out how your family can claim a credit on your federal taxes by donating to an approved SGO.

Learn more about the different school options available in your state.