How much funding does Federal Scholarship Tax Credit Program provide?

Funding amounts vary. Check the grant details for specifics.

When is the deadline for Federal Scholarship Tax Credit Program?

This grant has a rolling deadline or the deadline has not been announced.

Federal Scholarship Tax Credit Program

EDCHOICE KENTUCKY INC

Foundation Annual Grants for K-12 Schools Grants for Education

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Funding Amount

Varies

Deadline

Rolling / Open

Grant Type

foundation

Overview

Federal Scholarship Tax Credit Program

Overview: A federal initiative designed to make K–12 education more affordable and accessible for families across the United States by encouraging individual taxpayers to contribute to qualified Scholarship Granting Organizations (SGOs), which in turn provide scholarships to eligible students.

Key Details

Funding Source: 100% federally funded (not state of Kentucky)
Geographic Scope: United States; Kentucky participation subject to annual state election
Student Eligibility: All K–12 students, public or private
Program Status: Effective for donations made on or after January 1, 2027
No state cost or program cap on total credits
No program expiration date

Allowable Expenses

Tuition and school fees
Books and learning materials
Classroom supplies and equipment
Tutoring or special-needs services
Computers, tablets, and technology
Internet access for learning
School uniforms and required attire
Transportation to and from school

SGO Requirements

Must be a 501(c)(3) nonprofit based in the same state as the students it serves
Must spend at least 90% of contributions on scholarships
Must provide scholarships to at least 10 students who do not all attend the same school
Must verify household income for every applicant
Must maintain separate accounting for scholarship funds
Must apply for and maintain annual approval to operate under the program

Implementation Timeline

Program officially begins with donations made on or after January 1, 2027
SGOs must apply for approval once federal program is active
Students and families will begin applying for scholarships through approved SGOs once funds are available

State Participation

Each state must elect annually to participate
Election made by Governor or designated state official
Kentucky participation requires state election by authorized official
Participating states must maintain current list of approved SGOs and submit annually to U.S. Department of the Treasury

Governance

Governed by federal law, not state education departments
Focus on transparency, accountability, and accessibility

Contact

EdChoice Kentucky

Website: edchoiceky.com
Contact available through website

How to Apply

For Students & Families:
1. Check eligibility through EdChoice Kentucky website
2. Find an approved Scholarship Granting Organization (SGO) in your area
3. Apply for scholarships through approved SGO once funds are available
4. Provide household income verification for every applicant

For Donors:
1. Wait for federal program activation (donations effective January 1, 2027 or later)
2. Make contributions to qualified SGOs once program is active
3. Claim federal tax credit on tax return

For Schools & SGOs:
1. Apply for annual approval to operate under the program
2. Maintain 501(c)(3) nonprofit status based in participating state
3. Ensure compliance with core SGO requirements
4. Submit to state oversight and annual Treasury reporting