Federal Scholarship Tax Credit

Beginning Jan. 1, 2027, every U.S. taxpayer can redirect a portion of what they already owe in federal income tax to scholarships at participating Catholic schools.

What is it?

The Federal Scholarship Tax Credit (FSTC) is a federal income tax credit established by §25F of the Internal Revenue Code. It allows individual taxpayers to make contributions to certified Scholarship Granting Organizations (SGOs) and receive a dollar-for-dollar credit against their federal tax liability — not a deduction, but a credit.

• $1,700 Maximum credit per tax year for individuals
• $3,400 Maximum credit per tax year for married couples filing jointly
  

​The credit takes effect for contributions made on or after Jan. 1, 2027. Any unused credit may be carried forward up to five years.