The other school door
Federal scholarship tax credit (from 2027) · FSTC: up to $1,700 in contributions, starting Jan 2027
Beginning in 2027, individuals may claim a federal tax credit for donations of up to $1,700 to scholarship-granting organizations that help pay K–12 expenses. It is a new federal door beside the public-school door, with rules still being written.
What changed
- From January 1, 2027, individuals may claim a federal credit for up to $1,700 in cash contributions to scholarship-granting organizations.
- SGOs award scholarships for certain K–12 expenses.
Who it touches
Families who can navigate an SGO application, and public schools that share a community with them.
What it does not do
- It does not, by itself, close a public school.
- It is not a voucher mailed to every household.
Say this tonight
Next year, people can get a federal tax credit for donating to groups that give K–12 scholarships. It is a new way money can follow a child to a different school. We can learn the rules before 2027 so we are not guessing.
If this might apply to you, bookmark the IRS FSTC explanation and your state’s listed SGOs when they publish. If you are a public-school parent, ask your board one question: how will you report enrollment effects in 2027?