FEDERAL SCHOLARSHIP PROGRAM | BEGINNING IN 2027

Federal Scholarship Tax Credit

A new federal tax credit is designed to help individual taxpayers support educational scholarships for eligible K–12 students.

Important: This federal program is separate from Arizona’s existing Original and PLUS / Switcher tax-credit programs. The current Arizona donation form is not for federal-credit contributions.

Explore the official IRS guidance

$1,700

Per eligible individual

Potential maximum federal credit for a qualifying contribution.

$3,400

Joint filing potential

Two eligible spouses could each receive up to $1,700.

2027

Earliest qualifying year

Only eligible cash contributions made on or after January 1, 2027.

How the federal credit is expected to work

The Federal Scholarship Tax Credit under Internal Revenue Code Section 25F is a nonrefundable federal income-tax credit, not simply a charitable deduction. Actual eligibility depends on your federal tax liability and the program’s applicable rules.

  1. State participation is required. The state must formally elect to participate and identify approved Scholarship Granting Organizations.
  2. CTGO receives approval. CTGO must meet the federal requirements and be included on the state’s approved list before CTGO contributions can qualify.
  3. Qualified contributions open. When authorized, eligible individuals would make a designated cash contribution and retain the required acknowledgment for federal tax filing.

For prospective donors

The proposed federal program may offer another way to support scholarships once participation and organization approval are confirmed.

  • The credit applies to qualified individual cash contributions.
  • Gifts made in 2026 do not qualify for the 2027 federal credit.
  • State and federal credits are different; claiming both on the same contribution dollars is subject to special rules.
  • Donors cannot reserve a scholarship for a particular student.

For Arizona families

The federal program is intended to support qualifying elementary and secondary educational expenses. Student eligibility and scholarship administration have specific federal requirements.

CTGO’s existing Arizona tuition-assistance application process remains unchanged. Federal scholarship availability through CTGO would require separate approval. Existing applications continue through the current tuition-assistance process.

For current information, visit the tuition-assistance page.

What happens next?

CTGO will review the state’s official participation decision, federal SGO eligibility requirements, and any state approval process. Federal-credit contributions will not be offered through CTGO until the necessary authorizations and operational procedures are confirmed.

Already looking to contribute? CTGO’s existing Arizona individual tuition tax-credit donation page is separate and remains available for the current state programs. Learn about Arizona tax-credit giving.

For questions about CTGO and the new federal program, contact CTGO by email.

Frequently asked questions

Can I make a federal-credit contribution through CTGO today?

Not yet. Qualified cash contributions cannot begin before January 1, 2027. CTGO must also be included on an approved state SGO list before contributions to CTGO can qualify.

Is this the same as the Arizona tuition tax credit?

No. The new credit applies to federal income tax. Arizona’s Original, PLUS / Switcher and corporate tax-credit programs have their own requirements and contribution processes.

When will CTGO confirm availability?

After Arizona’s official status and CTGO’s eligibility and approval have been verified. Availability and contribution instructions will be announced only after the required authorizations and procedures are established.

Where can I check the rules?

See the IRS overview and guidance and the IRS participating-state list. These sources govern over this preliminary summary.

Information for planning, not personalized tax advice. Rules and administrative processes may change.