Federal Scholarship Tax Credit
Governor Hochul Opts New York Into the Federal Scholarship Tax Credit
A new federal program will expand educational opportunities for families across the country, including in New York. The Federal Scholarship Tax Credit will help ease the burden on tuition-paying families at Catholic and other private schools while also supporting public school students through a broad array of educational services. Governor Hochul has officially announced she is opting New York into the program, marking an important step toward making this opportunity available to families across the state.
Created under federal law, the program is set to begin in 2027 and will allow eligible taxpayers to receive a federal tax credit for donations to nonprofit Scholarship Granting Organizations (SGOs). These organizations can provide scholarships and support for a variety of educational needs, benefiting students and families across New York.
With New York now opted in, we encourage families, educators, and supporters to learn more about the Federal Scholarship Tax Credit and how it can help expand educational opportunities for students throughout our state.
Read our statement here.
Read Governor Hochul's statement here.
What Is the Federal Scholarship Tax Credit?
The Federal Scholarship Tax Credit is a new initiative designed to help families access the educational options that best meet their children’s needs. The program allows individual taxpayers to receive a 100% federal tax credit of up to $1,700, or up to $3,400 when filing jointly, for donations made to nonprofit Scholarship Granting Organizations (SGOs). These organizations then distribute the funds as scholarships to eligible students. Any American taxpayer who owes federal income tax can qualify for this credit and redirect the amount to a SGO instead of paying it to the IRS. Unlike many government programs, this initiative relies on private donations rather than government spending.
Scholarships could be used for a variety of educational needs, including:
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School tuition
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Tutoring
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Special education services
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Education technology
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Academic supplies and other educational supports
The program will benefit millions of students nationwide.
Who Will Qualify?
Eligibility for scholarships extends to families earning up to 300% of the regional median income, which could include more than 90% of K–12 students in many areas.
Does My Diocese Have an SGO?
Find your diocese below to see whether an SGO is available and learn how you can support educational opportunities for students in your community.
Archdiocese of New York
Diocese of Brooklyn
Diocese of Rockville Centre
Diocese of Buffalo
Diocese of Rochester
BISON Children's Scholarship Fund
Diocese of Albany
Diocese of Ogdensburg
Diocese of Syracuse
When Will the Program Start?
The Federal Scholarship Tax Credit program takes effect January 1, 2027, for the 2027 tax year.
What Happens Next?
The Governor must submit a list of approved Scholarship Granting Organizations (SGOs) to the U.S. Treasury Department each year.
Informational Flyer
Whether you're sharing this opportunity with family, friends, your parish, or your community, our Federal Scholarship Tax Credit flyer makes it easy to explain how the program works and why it matters for New York. Download the flyer in English or Spanish.