A new federal tax credit will be available for individuals who donate to eligible K-12 scholarship-granting organizations (SGOs – such as Step Up For Students). The donations will be used to fund a new nationwide scholarship program set to launch in 2027. The scholarships will provide families with additional resources - and can be used in addition to state scholarships - for K-12 education expenses.
A tax credit directly lowers the amount of money you owe in taxes. For example, if you owe $2,000 in federal taxes and receive a $1700 tax credit, you now only owe $300. Click here to learn more about how tax credits work.
A tax deduction reduces your taxable income. So, if you made $50,000 and gave $500 to an approved charity, you can claim a deduction and be taxed as if you made $49,500.
Tax credits save you more money than deductions because they cut your tax bill dollar-for-dollar. This means more savings for donors and more funding for scholarships.
To qualify, students must be eligible to attend a public K-12 school and reside in households earning up to 300% of the area’s median income, which includes most families across the country. Click here to see if your family income qualifies.
Yes, families can use the Federal Tax Credit Scholarship to supplement their existing state scholarship. This means you may be able to combine both scholarships to help cover more of your child’s educational expenses – like tuition, technology, tutoring, and more.
Starting in 2027, families in states whose governor opts in to participate may be able to qualify for these scholarships. Click here to see which states have opted in as of today.
Families who qualify may utilize the scholarship for:
A Scholarship Granting Organization (SGO) must be recognized as a 501 (c)(3) non-profit, allocate at least 90% of revenue to scholarships, and serve multiple students across more than one school. An SGO must adhere to compliance requirements and regulations.
Step Up For Students currently operates as a Scholarship Funding Organization (SFO) in Florida and is actively preparing to become a Scholarship Granting Organization (SGO) under the new federal law, positioning Step Up For Students to administer and allocate scholarships funded through federal tax credits.
The Federal Scholarship Tax Credit allows donors to receive a dollar-for-dollar credit on their tax return, up to $1,700 annually, for contributions to a qualified Scholarship Granting Organization.
Thank you for your generous support in helping children access the education they deserve. Your commitment will open doors and create brighter futures for K-12 students in America. Please sign up here to learn how you can pledge in the future and make an impact on education nationwide.
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Yes. The Federal Scholarship Tax Credit is designed to support BOTH public and private school K-12 students.
If your child attends a public school, the scholarship can help pay for:
