top of page
seeds-of-hope-logo.png
St Francis STEM school_AW-56.jpg

A New Way to Make Catholic Education Possible

What is the new Federal Tax Credit Scholarship Program?

The new Federal Tax Credit Scholarship Program (also known as the Education Freedom Tax Credit) is a new federal program that allows individuals to receive a dollar-for-dollar tax credit for donations made to qualified Scholarship Granting Organizations (SGOs), like Seeds of Hope.

​

Beginning in January 1, 2027, this new program will create a new funding source for K–12 scholarships nationwide.

SOH_For-Individual-Donars_Fed-Scholarship-Tax-Credit_Program_2027_Pt1.png
SOH_For-Individual-Donars_Fed-Scholarship-Tax-Credit_Program_2027_Pt2.png

Check your most recent IRS 1040 Federal Tax Form. On Line 16 (“Tax”), if this amount exceeds $1,700, you will qualify for the full $1,700 tax credit. If it is less than $1,700, your tax credit will be equal to that amount.

tax_form_website_2.png

Schools Supported 

    • All Souls Catholic School

    • Annunciation Catholic School

    • Assumption Catholic School

    • Blessed Miguel Pro Catholic Academy

    • Blessed Sacrament Catholic School

    • Christ the King Roman Catholic School

    • Frassati Catholic Academy

    • Good Shepherd Catholic School

    • Most Precious Blood Catholic School

    • Nativity: Faith & Reason Catholic School

    • Notre Dame Catholic School

    • Our Lady of Fatima Catholic School

    • Our Lady of Loreto Catholic School

    • Our Lady of Lourdes Catholic Classical Academy

    • Sacred Heart of Jesus Catholic School

    • Shrine of St. Anne Catholic School

    • St. Clare of Assisi Catholic School

    • St. James Catholic School

    • St. John the Baptist Catholic School

    • St. John the Evangelist Catholic School

    • St. Joseph Catholic School

    • St. Mary Catholic School, Greeley

    • St. Mary Catholic Virtue School, Littleton

    • St. Rose of Lima Catholic Academy

    • St. Stephen Catholic School

    • St. Therese Catholic Classical School

    • St. Thomas More Catholic School

    • St. Vincent de Paul Catholic School

    • Sts. Peter and Paul Catholic STEM School

    • Holy Family High School

Cardinal Dolan Explains the New Program

Frequently Asked Questions

  • Individuals can donate up to $1,700 per year to an approved SGO and receive a 100% federal tax credit for that contribution.

    • It is nonrefundable, but unused credits can be carried forward for up to five years.

    • Donations must go through an approved SGO to qualify.

  • An SGO is a nonprofit organization that:

    • Receives donations from individuals

    • Distributes those funds as scholarships to eligible students

    To participate, SGOs must meet federal requirements, including:

    • Operating as a 501(c)(3) nonprofit

    • Spending at least 90% of funds on scholarships

    • Being approved by their state and the U.S. Treasury

  • The program is designed to benefit three key groups:

    Students & Families

    • Scholarships help cover tuition and other educational expenses

    • Eligibility typically includes families earning up to ~300% of area median income

    Donors

    • Receive a dollar-for-dollar federal tax credit

    • Can direct their tax liability toward scholarships

    Schools

    • Gain access to new scholarship funding streams

    • Increase access for families who otherwise could not afford tuition

  • The Federal Tax Credit Scholarship Program is expected to take effect on January 1, 2027.

    States must opt into the program and submit approved SGOs before donations qualify for the credit. Colorado has opted into the program.

  • No. This program is funded through private donations, not direct government spending.

    The federal government provides a tax credit to donors, but:

    • Funds are privately contributed

    • Scholarships are administered by Seeds of Hope

  • Unlike voucher programs:

    • Funds do not come from public education budgets

    • Participation is voluntary for donors

    • Scholarships are funded through private philanthropy incentivized by tax policy

  • The program has the potential to:

    • Significantly increase scholarship funding

    • Expand access for low- and middle-income families

    • Create a sustainable, long-term funding stream for tuition assistance

  • While the program officially begins in 2027:

    • Donors can begin learning how to participate

    • Organizations are preparing systems and partnerships now

    • States (including Colorado) are already taking steps to opt in

  • The new Federal Tax Credit Scholarship Program represents a historic expansion of educational opportunity, creating a permanent, nationwide mechanism to:

    • Increase access to high-quality education

    • Empower parental choice

    • Strengthen scholarship programs serving families in need

Sign up to receive updates on the New Federal Tax Credit Scholarship Program

Multi-line address
What best describes your interest in the Federal Tax CreditScholarship Program?
bottom of page