Federal Tax Credit for Private Schools
Did you hear about the new Education Freedom Tax Credit program? The Education Freedom Tax Credit allows taxpayers to receive a federal tax credit of up to $1,700 for charitable contributions made to a Scholarship Granting Organization (SGO) like Central Christian Academy. Unlike a deduction, a tax credit reduces your federal income tax owed dollar-for-dollar. Any U.S. citizen or resident in a state or D.C. who makes a qualifying contribution to an SGO may claim the credit. Those funds would be able to help CCA families cover tuition costs. Contributions open January 1, 2027.
How does the credit work, step by step?
First, a state governor opts in, making it a “covered state” and publishing an official SGO list. Second, a donor makes a cash contribution to an SGO on that list. Third, when filing their federal income tax return, the donor claims a dollar-for-dollar credit of up to $1,700. If the full credit cannot be used in one year, the unused portion carries forward for up to five years.
Is New York Participating?
Gov. Kathy Hochul said New York would participate but this has not been finalized yet. Contact the Governor’s office to let her know your thoughts about school choice. If you live in New York, you can contact Gov. Hochul’s office or call (518) 474-8390.
