FEDERAL SCHOLARSHIP TAX CREDIT

More Opportunities for New York Students to Learn and Succeed

A new federal scholarship tax credit can help families access the educational support their children need — whether they attend a public or non-public school.

See What It Means For Families

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BEGINNING

2027

Beginning January 1, 2027, the Federal Scholarship Tax Credit program will incentivize contributions of up to $1,700 by individuals with a federal tax liability to not-for-profit scholarship granting organizations, which will provide scholarships to eligible K–12 students for qualified educational expenses.

Importantly, the program will benefit children throughout New York who attend both public and non-public schools by expanding affordability and access to additional educational goods and services.

Governor Kathy Hochul (D-NY) has publicly stated her support of the Federal Scholarship Tax Credit program and her intent to have New York participate, which will bring hundreds of millions of dollars in new scholarships to New York students.

What Could This Mean for New York Families?

For many students, success depends on having access to a little more help outside the traditional classroom. Scholarships supported through the federal tax credit may help eligible families with expenses such as:

Academic Tutoring

Extra help in reading, math and other subjects can give students the individual attention they need to catch up, keep up or get ahead.

Special Needs Services

Scholarships may help families access qualifying special-needs services that address a child’s individual educational needs.

Books, Supplies and Technology

Qualified educational expenses can include books, supplies, equipment and certain computer technology and internet access used for a student’s education.

Extended Day Programs

Supporting students beyond the traditional school day with safe, structured opportunities for continued learning, enrichment, and academic support.

Public School Students Can Benefit, Too

The Federal Scholarship Tax Credit isn’t limited to families choosing private schools. Federal law includes qualifying educational expenses connected with attendance at public, private and religious schools, meaning scholarships can provide additional resources for eligible students who remain in their neighborhood public schools as well. That can mean more access to tutoring, educational materials, technology, special-needs services and certain other qualifying academic support.

THE 2027 PROGRAM

How It Works

Beginning in 2027, taxpayers can receive a dollar-for-dollar federal tax credit of up to $1,700 for cash contributions to qualified Scholarship Granting Organizations.

Those organizations use the contributions to provide scholarships for eligible K–12 students. For students to qualify for the scholarships, a state must participate in the program and provide the IRS with a list of qualifying scholarship granting organizations.