Turn Your Tax Credits Into Life-Changing Scholarships
We will transform your federal tax credits into educational opportunities for students across the nation.
Join Our Efforts for Educational Freedom
Be part of the movement to expand educational opportunities for all families.
Summary
The federal government has established a new tax credit scholarship program that will expand K-12 educational opportunities and benefit millions of students across the country in the years ahead.
Signed into law in July 2025 and taking effect on January 1, 2027, the program is now permanently codified in the U.S. tax code (Section 25F of the Internal Revenue Code). This historic, first-of-its-kind legislation provides a federal income tax credit for individuals who contribute to Scholarship Granting Organizations (SGOs).
Once we are an approved SGO, we will help facilitate these contributions and direct scholarship funding to eligible students.
WHY US
Why choose Friends of Education as your scholarship granting organization?
We’re more than just a scholarship organization, we’re your trusted partner in maximizing educational impact through the federal tax credit program.
On Track for Full SGO Qualification
Actively pursuing designation as a Scholarship Granting Organization under IRC Section 25F, with recognition anticipated from participating states and the U.S. Department of the Treasury.
Maximum Tax Benefit
Your donation qualifies for the full $1,700 dollar-for-dollar federal tax credit. Every penny you contribute reduces your tax bill directly.
Direct Impact
Your support immediately helps families access better educational opportunities.
Simple Process
From donation to tax credit documentation, we handle all the compliance, reporting, and record-keeping so you can focus on making a difference.
Proven Track Record
We've successfully managed scholarship programs for years, helping thousands of students access quality education that fits their unique needs.
Transparent Operations
Annual audits, clear financial reporting, and dedicated support ensure you always know exactly how your contribution is making a difference.
HOW IT WORKS
How The Federal Tax Credit Program Works
A simple, powerful way to support education while maximizing your tax benefits
Step 1
You Make a Contribution
Contribute up to $1,700 to Scholarship Credits. Your donation is placed in our dedicated scholarship fund—set apart exclusively for supporting eligible students. You have the option to direct your gift to an approved school that offers financial aid.
Step 2
We Provide Documentation
You receive immediate confirmation and all necessary tax documentation, including written acknowledgment of your contribution and proof of our qualified SGO status.
Step 3
Claim Your Federal Tax Credit
When filing your federal tax return, claim the $1,700 non-refundable federal tax credit. This directly reduces your federal tax liability dollar-for-dollar.
Step 4
We Award Scholarships
We evaluate student applications based on eligibility criteria and award scholarships for tuition, tutoring, special education services, curriculum, and more.
Step 5
Students Access Better Education
Families use scholarships to choose the educational options that best meet their children’s needs, whether private school, specialized tutoring, or other qualified expenses.
Tax Value: Maximum Federal Tax Credit
Dollar-for-Dollar Tax Credit
Eligible to Participate
Money Distribution: Goes Directly to Scholarships.
KEY STATISTIC
Real Results Across The Country
Together with our donors and partners, we’ve delivered millions in funding to classrooms, scholarships, and innovative educational programs.
FAMILIES
Benefits for Families
Broad Eligibility
Families earning up to 300% of regional median income qualify—covering most K-12 students.
Simple Application
Straightforward process with clear eligibility requirements and dedicated support
Your Choice
You decide what educational option best fits your child’s unique needs and learning style.
Flexible Use
Scholarships work for private schools, tutoring, special education services, curriculum, technology, and more.
Renewable Awards
Students who receive scholarships are prioritized for renewal in subsequent years.
Special Needs Support
Enhanced scholarship amounts available for students with documented special needs.
DONORS
Benefits for Donors
Maximum Tax Savings
Full $1,700 federal tax credit that directly reduces your tax bill.
Five-Year Carryforward
Can't use the full credit this year? Carry it forward for up to five years.
Complete Documentation
We provide all paperwork needed for your tax professional or filing.
IRS Compliant
All contributions will be verified and audited to ensure full compliance with federal law.
Give Where it Matters the Most
You can select an approved tuition-based school to receive your contribution. The school(s) will be notified about your gift and can receive the funds once they provide the appropriate paperwork.
FAQ
Frequently Asked Questions
Get answers to common questions about school choice and our resources
What is the federal scholarship tax credit?
The federal scholarship tax credit is a new program under Internal Revenue Code § 25F that allows individual taxpayers to receive a dollar-for-dollar tax credit of up to $1,700 per year for contributions to qualified scholarship-granting organizations.
Who is eligible for the federal scholarship tax credit?
The credit is available to individual taxpayers who make qualifying cash contributions to approved scholarship organizations. It is not available to businesses or corporations.
When does the federal scholarship tax credit start?
The program is expected to begin for tax years after 2026, meaning taxpayers can first claim the credit on returns filed for 2027.
Who qualifies for scholarships under the program?
Students are eligible if they:
- Are eligible to attend a public elementary or secondary school
- Come from households earning up to 300% of area median income
This broad definition allows many middle-income families across the country to qualify.
Do states need to participate in the federal scholarship program?
Yes. The program requires states to opt in by submitting a list of approved scholarship-granting organizations to the IRS.
Without state participation, scholarship organizations in that state may not be able to participate directly in the program.