Tax Tip #313

Beginning January 1, 2027, taxpayers can claim a 100% non-refundable federal tax credit up to $1,700 annually for cash contributions to a scholarship granting organization (SGO). 

An SGO is a charity that uses at least 90% of its income on scholarships for education choice options for eligible K-12 students. 

A state must opt-in to the program for a taxpayer to make a charitable contribution to an SGO on a state SGO list. 

Currently, there are 31 states that have opted in or will opt in. NY & NC are two states that have opted in so far, while NJ & PA are two states that have not currently opted in.