What is the Federal Scholarship Tax Credit Program?

Many people are unaware that last July 2025, Congress passed a new Federal Scholarship Tax Credit Program that will begin this January. The optional program is available for states where governors select to opt in. If Massachusetts participates, children in grades K-12 across the Commonwealth (public and private school students) will benefit from a variety educational resources and services that would be fully funded through individual federal tax donations. Through this unique program, taxpayers may choose to donate up to $1,700.00 to an approved Scholarship Granting Organization (SGO) of their choice and receive a full dollar-for-dollar federal tax credit. SGOs will use the donated funds to support students with family incomes below 300% of Massachusetts’s median income, with tutoring, after school care, transportation, books, tuition, technology, hearing equipment, speech services, and much more. There are no public funds involved or impacted, most Massachusetts families would qualify, and multiple scholarship granting organizations with links to numerous educational programs would be established.  Please read rest of this important information here.