27 States Signed Up for Trump's New School Tax Credit—Here's Who Hasn't
Summary
More than half of U.S. states—27 in total—have chosen to join a new federal program that gives taxpayers a tax credit for donating money to education scholarships. This program, created under President Donald Trump’s law, will start giving tax credits for donations made in 2027, helping families pay for private school and other educational costs.Key Facts
- 27 states have officially joined the Federal Scholarship Tax Credit (FSTC) program.
- The FSTC program was created under President Donald Trump’s One, Big, Beautiful Bill Act.
- Eligible taxpayers can receive a federal tax credit of up to $1,700 for donations to Scholarship Granting Organizations (SGOs).
- Scholarships can help pay for private school tuition, tutoring, uniforms, or career training costs for families earning up to 300% of the area's median income.
- Donations qualifying for the tax credit will start on January 1, 2027, with tax credits claimable on 2028 returns.
- The tax credit is nonrefundable, reducing tax owed but not providing refunds beyond that amount, and unused credits can be carried forward up to five years.
- Governors or state authorities must submit approved Scholarship Granting Organizations to the U.S. Treasury by January 1 each year for scholarship funding to be available.
- Residents of nonparticipating states can still get the tax credit by donating to organizations in participating states, though the scholarship money may go to students outside their state.
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