The new federal K–12 Scholarship Tax Credit, effective 2027, represents an unprecedented opportunity for frum families, schools, and communities. Here’s how to position yourself and your school for maximum benefit.
What is the 2027 School Choice Credit?
Starting in 2027, taxpayers can receive a dollar-for-dollar federal tax credit (up to $1,700 per taxpayer) for donations to certified Scholarship Granting Organizations (SGOs), which will fund tuition scholarships for K–12 students attending nonpublic schools, including yeshivos and day schools.
- Any U.S. taxpayer can participate
- Donations must go to a certified SGO/CSO
- Scholarships awarded to eligible families for tuition
How to Prepare: Step-by-Step
- Educate & Mobilize: Host community forums, distribute summaries, and create checklists for parents (tax status, tuition receipts, eligibility).
- Empower Schools: Partner with or create a Certified Scholarship Organization (CSO) and plan tuition models based on the new credits.
- Donation Strategy: Inform donors (including out-of-state relatives) about the credit. $1,700 donated = $1,700 tax credit.
- Advocacy: Meet with state officials, run awareness campaigns, and coordinate with Agudah and Torah Umesorah.
- Track Progress: Assign a tuition credit point person in each school and coordinate updates through community channels.
Family Preparation Timeline
| Year |
Action |
| 2025 |
Learn about the law, confirm income, track tuition, subscribe to updates. |
| 2026 |
Attend school meetings, confirm eligibility, plan donations. |
| Early 2027 |
Donate to CSO, apply for scholarship. |
| Fall 2027 |
Scholarships disbursed to schools on behalf of families. |
Additional Resources
For the official policy summary, see the Agudath Israel Federal Tax Credit Briefing (PDF).