October 9, 2026
New York is in!
Governor Kathy Hochul has announced that New York will participate in the Federal Scholarship Tax Credit.
“Today is a great day for Catholic education and for students across New York.”
John Notaro, Executive Director, Futures in Education
Read John’s full statementClose statement
“Today is a great day for Catholic education and for students across New York. Futures in Education is deeply grateful to Governor Kathy Hochul for announcing that New York will participate in the Federal Scholarship Tax Credit.
I have long believed this program is one of the most significant opportunities for Catholic education in a generation. Every year, our team meets parents working second jobs, grandparents helping with tuition, and families making real sacrifices because they know the formation their children receive in our Catholic schools is worth it. With New York taking part, the scholarship dollars New Yorkers give can stay right here at home, supporting students in Brooklyn and Queens.
Generations of faithful Catholics built our schools and invested in young people they would never meet. Now it is our turn. We thank everyone who made their voice heard along the way, and we look forward to sharing more as New York puts the program in place.”
John NotaroExecutive Director, Futures in Education
The Federal Scholarship Tax Credit: What It Means for Our Students
A new federal program could bring expanded educational opportunity to families across New York, including the students and families we serve in Brooklyn and Queens. It can help more families afford a Catholic school education while also funding services that support public school students. And New York is in: on October 9, 2026, Governor Kathy Hochul announced that New York will participate. After reviewing the federal regulations, the Governor said the program could bring millions of additional dollars to New York students and families, including students in public schools, without drawing on public school or state and local budgets. In her words, she is “not going to leave money on the table.” Read the Governor’s full statement.
The Tax Credit at a Glance
For Families
For Families
Who qualifies: Families earning up to 300% of their area’s median income, the large majority of households.
How to apply: Apply through an approved scholarship granting organization (SGO) like Futures in Education, operating in your state.
What it covers: A wide range of K–12 education expenses, the same categories allowed under a Coverdell education savings account (see FAQ).
Award size: Scholarship amounts are determined by each SGO.
For Donors
For Donors
The benefit: A 100% federal tax credit, not just a deduction, against your individual income tax:
- Up to $1,700 per single taxpayer each year
- Up to $3,400 for married couples filing jointly, per new IRS guidance
- Non-refundable, with a 5-year carryover
- Cannot be directed to a specific student
- Cannot also be claimed as a federal charitable deduction
When: Begins in 2027; annual deadline is December 31.
Where: Available to donors in all 50 states and Washington D.C.
To whom: Donations go to approved SGOs.
How It Works
Any taxpayer who owes federal income tax can claim a 100% federal tax credit of up to $1,700 (or up to $3,400 for married couples filing jointly) for donations to nonprofit Scholarship Granting Organizations (SGOs), organizations like Futures in Education that award scholarships directly to students. That means donors can redirect what they’d otherwise pay the IRS toward student scholarships instead, at no net cost to themselves. Because the program runs on private donations rather than government spending, it creates new scholarship dollars without new state costs.
How a gift becomes a scholarship
Give
A donor gives to an approved SGO like Futures in Education.
Claim Your Credit
The donor claims a dollar-for-dollar federal tax credit.
Families Apply
Eligible families apply to Futures in Education for a scholarship.
Scholarships Awarded
Futures in Education awards scholarships for qualified K–12 expenses.
Students Thrive
Students get the education that fits them best.
Scholarships can be used for a range of educational needs, including:
- School tuition
- Tutoring
- Special education services
- Educational technology
- Academic supplies and related supports
Who Could Qualify?
Families earning up to 300% of their region’s median income are eligible, broad enough to include more than 90% of K–12 students in many areas, including a great many families right here in Brooklyn and Queens.
Why It Matters
With New York taking part, millions of dollars in privately funded scholarships could flow to students statewide through SGOs like Futures in Education. Here’s who stands to benefit:
For Families
- Scholarships that help put a Catholic school education within reach
- Access to the educational options that best fit each child
- Help with tutoring, special education services, technology, and supplies
For Donors
- Redirect up to $1,700 of your federal taxes to students, or up to $3,400 for married couples filing jointly
- A dollar-for-dollar credit, so your gift comes at no net cost
- Keep your giving right here at home, supporting students in Brooklyn and Queens
For Schools & Communities
- Stronger long-term financial stability for our schools
- Support for students in both Catholic and public schools
- New scholarship dollars with no new cost to the state
For many of the families we serve in Brooklyn and Queens, a scholarship is the difference between having real educational choices and having none.
The Timeline and What’s Next
The credit takes effect on January 1, 2027. On October 9, 2026, Governor Hochul announced that New York will participate. Next, the state will submit its list of approved SGOs to the U.S. Treasury Department, as federal law requires each year, a list that scholarship organizations like Futures in Education could be part of. We’ll share updates here as New York puts the program in place.
With New York taking part, the scholarship dollars New Yorkers give can stay right here at home.
Frequently Asked Questions
What is the Federal Scholarship Tax Credit?
It’s a new federal initiative designed to help families access the educational options that best fit their children’s needs. Taxpayers who owe federal income tax can claim a 100% federal tax credit of up to $1,700, or up to $3,400 for married couples filing jointly, for donations to nonprofit Scholarship Granting Organizations (SGOs), which then distribute the money as scholarships to eligible students. In effect, a donor redirects part of their federal tax bill to an SGO rather than paying it to the IRS.
How are the scholarships funded?
Entirely through private donations rather than government spending. Donors give to approved SGOs and receive a dollar-for-dollar federal tax credit in return, so new scholarship dollars are created without new public costs.
What can a scholarship be used for?
A wide range of K–12 educational needs, including:
- School tuition
- Tutoring
- Special education services
- Educational technology
- Academic supplies and other educational supports
Who is eligible to receive a scholarship?
Families earning up to 300% of their region’s median income, a threshold broad enough to include more than 90% of K–12 students in many areas, including a great many families here in Brooklyn and Queens.
How much can I donate, and what is the tax benefit?
Single taxpayers can claim up to $1,700 per year. Married couples filing jointly can claim up to $3,400 per year, doubling their giving power. Either way, it’s a 100% federal tax credit, not a deduction, so it lowers your federal tax bill dollar for dollar and the donation effectively comes at no net cost to you.
Can married couples filing jointly give more?
Yes. Under IRS guidance released October 1, 2026, the $1,700 limit applies to single taxpayers, while married couples filing jointly can claim a credit of up to $3,400 per year (as two separate $1,700 donations).
Do I need to give $1,700 to receive a credit? What if I give less, or more?
No, smaller gifts count too. Your credit equals the amount you give, up to the annual limit, so a $500 gift earns a $500 credit. To receive the full credit, a single taxpayer would give $1,700, and a married couple filing jointly would give $3,400 (as two separate $1,700 donations). You’re always welcome to give more, but any amount above the limit doesn’t count toward the tax credit.
What kinds of gifts qualify?
Gifts of money: cash, check, credit or debit card, electronic transfer, or after-tax payroll deduction. Gifts of stock, other property, or digital assets don’t qualify for the credit.
Do I need to itemize to claim the credit?
No. You can claim the credit whether or not you itemize deductions.
If I itemize deductions, can I also claim my donation as a charitable deduction?
No. The same donation can’t count twice. The amount you claim for the tax credit can’t also be listed as a charitable deduction, even if you itemize.
I’m a school parent or grandparent. Can my gift affect my family’s scholarship?
No gift can be designated for a particular student, including your own child or grandchild. There is also a rule for large gifts: if your gifts for the credit to one SGO top $5,000 in a year and make up more than 2% of all the gifts it receives for the credit that year, your relatives may be ineligible for that SGO’s scholarships for two years. If your family receives or plans to apply for a scholarship, talk with your tax advisor before making a large gift.
When does the program begin?
The federal scholarship tax credit takes effect on January 1, 2027.
Do gifts I make in 2026 count?
No. Only gifts made on or after January 1, 2027 count toward the credit. Gifts made in 2026 are always welcome; they just don’t count toward this credit.
Will New York families be able to benefit?
Yes. On October 9, 2026, Governor Kathy Hochul announced that New York will participate. Federal law requires each state’s governor to submit a list of approved SGOs to the U.S. Treasury Department each year.
What happens next?
Before the credit takes effect on January 1, 2027, New York will submit its list of approved scholarship granting organizations, as federal law requires. We’ll share updates on this page as the state puts the program in place.