New York State is IN! Governor Hochul has announced New York’s participation which will bring new private investments into New York communities with scholarship funding for students in public and non-public schools.
Eligible Uses for Scholarships Include:
HERE IS HOW IT WORKS!
The 100% Federal Scholarship Tax Credit in 3 simple steps:
The Federal Scholarship Tax Credit law allows individual taxpayers beginning on January 1, 2027 to receive a 100% dollar for dollar tax credit against federal individual income taxes for donations made to eligible nonprofit scholarship granting organizations (SGOs). These organizations can then provide scholarships for a wide variety of eligible educational expenses to support K-12 students in public and non-public school settings.
Taxpayers can donate up to $1,700 annually to SGOs.
All students in public and non-public schools from households with incomes up to 300% of the area median family income are eligible to benefit. The income ceilings for 2026 are provided by the U.S. Department of Housing and Urban Development here.
Scholarships supported by “qualified contributions” could fund tutoring, technology, special education services, enrichment programs, transportation, tuition, and other eligible educational expenses described in section 530(b)(3)(A), known as Coverdell education savings accounts.
Why New York is Participating
The federal scholarship tax credit will:
- Bring significant new private investment into New York communities for scholarship funding for students in public and non-public schools.
- Support students across a wide range of educational settings: district public schools, charter public schools, independent schools, and religious schools.
- Expand access to tutoring, enrichment, after-school programs, and specialized services.
- Enable parents and legal guardians to access the schools and programs they determine best meet their children’s needs.