New · January 2027

Federal Scholarship Tax Credit (2027)

Starting with 2027 gifts, donors to an approved SGO in an opted-in state can claim as much as $1,700 against federal tax. Ohio made the IRS's June 2026 list of participating states.

Last verified: October 2026

Is Ohio taking part in the federal scholarship tax credit?

Yes. Ohio appears among the participating states the IRS announced in June 2026, and the credit applies to qualified gifts made on or after January 1, 2027. Donors can take up to $1,700 per taxpayer.

What could the federal credit mean for a Cincinnati private school family?

Potentially a new scholarship pool. Federal-credit awards are meant for households earning up to 300% of the area median, so a Cincinnati family facing Catholic high school tuition well beyond the $8,408 award could gain one more layer. How much depends on which SGOs win approval and what they raise.

Does the federal credit help Northern Kentucky families too?

Possibly, through Kentucky's own SGOs. Kentucky's legislature opted the state in by overriding the governor's veto in March 2026, and the state's opt-in papers went to the IRS in July 2026. That is separate from Ohio: a Kentucky family still cannot use EdChoice.

Which Ohio SGOs will be approved for the federal credit?

Unknown so far. Through late October 2026 Ohio had not posted which SGOs will carry federal approval. Once that list exists, this page and our funding check will name the local ones.

Federal credit myths and facts
FactMyth
Donors claim it; families receive SGO scholarshipsParents apply to the IRS for it
Only 2027 and later gifts countThis year's gifts qualify
It can sit alongside EdChoiceIt replaces EdChoice

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