The Federal Scholarship Tax Credit was enacted by Congress in 2025. Starting in 2027, individuals can receive a dollar-for-dollar federal tax credit of up to $1,700 for donations to approved Scholarship Granting Organizations (SGOs), and married couples who each give can receive up to $3,400. SGOs then award scholarships to New Jersey students in both public and non-public schools to help cover tuition, tutoring, books, special-needs services, and other educational costs.
This program does not draw on the state budget, local property taxes, or the public school funding formula. It is funded by voluntary private donations, offset by a federal tax credit. Public school students stand to benefit directly through scholarships for tutoring, special-needs services, and more.
You may have heard this program described as a "school voucher" scheme that will hurt public education, or as a benefit for wealthy families who could already afford private school. Neither is accurate, and we need your voice to help set the record straight. By federal law, scholarships are limited to students from households earning no more than 300% of their area's median income, keeping the focus on working- and middle-class families.
Here's what you can do right now:
Time matters. The opt-in deadline is January 1, 2027, and donations become eligible for the credit starting that day. Scholarship organizations need time to apply and be approved before then. Please take a few minutes today to send the letter below.
Thank you for standing up for New Jersey families and students.