Federal Scholarship Tax Credit Resource Hub

The Federal Scholarship Tax Credit is a program that allows eligible taxpayers to receive a federal tax credit when they donate to approved Scholarship Granting Organizations that award scholarships to students.

These donations help fund scholarships for eligible children and families, expanding access to educational opportunities and services. The program creates an opportunity for people to support students in their communities while receiving a tax benefit for their qualifying donations.

Yes. New York State is opting into the program. The Archdiocese of New York is grateful to Governor Kathy Hochul for this decision, which will help make this new opportunity available to eligible students and families in New York. The program is scheduled to begin January 1, 2027.

Scholarships will be awarded by approved nonprofit organizations known as Scholarship Granting Organizations, or SGOs.

These organizations receive qualifying donations and use the funds to award scholarships to eligible students. We will share additional information about participating organizations and how families can apply as the program is implemented.

1. Make a cash gift of up to $1,700 for individuals or $3,400 for married couples filing jointly to an approved SGO, and tell the SGO it’s a qualified Section 25F contribution.
2. Keep the acknowledgment the SGO sends you.
3. Complete Form 8525, Federal Scholarship Tax Credit, with the required SGO and donor numbers, and file it with your federal tax return.

The program is designed to help eligible students and families across different educational settings. It is not limited to Catholic school students or families.

Scholarships may support students attending Catholic, public, charter, and independent schools, subject to program requirements. This means the program can help children and families throughout New York, regardless of whether they currently attend a Catholic school.

No. The program is intended to benefit eligible students across educational settings, not just those attending Catholic schools.

The Archdiocese of New York supports opportunities that help children learn, grow, and reach their full potential. The program can provide educational assistance to eligible students and families while also helping make Catholic education more accessible to families who wish to choose it.

Under the program's income guidelines, students from households earning up to 300% of the area median income may qualify. Area median income varies by location and is determined using federal housing guidelines.

Scholarships may help cover a range of eligible educational expenses, including:

Tuition and school fees

• Tutoring and academic support
• Curriculum and educational materials
• Special education services
• Educational technology and supplies

A qualifying donation can help fund scholarships for eligible students and expand educational opportunities for children and families. The program provides a way to support students in local communities while potentially receiving a federal tax benefit.

Donors can support educational opportunities for children across school settings, including families who may be seeking assistance to access a Catholic education.

Eligible taxpayers may receive a dollar-for-dollar, non-refundable federal income tax credit for qualifying donations to approved Scholarship Granting Organizations, subject to federal rules and limits.

A tax credit reduces the amount of federal income tax a person owes. Because the credit is non-refundable, it generally cannot exceed the taxpayer's eligible tax liability.

Under the program, eligible individual taxpayers may claim a federal tax credit of up to $1,700 per year for qualifying donations. Married couples filing jointly may each claim up to $1,700, for a total of up to $3,400 on a joint return, subject to applicable requirements.

Donors should consult a qualified tax professional to understand how the credit may apply to their individual circumstances.