The U.S. Capitol Building
FAQs about the new Federal Tax Credit Scholarship Program
Q1. What is the new Federal Tax Credit Scholarship Program?
A1. The “Big Beautiful Bill” which passed on July 3rd and is headed to the President for signing on July 4th creates a new federal tax credit designed to expand school choice by encouraging donations to nonprofits like AAA Scholarship Foundation that help families pay for private or alternative K-12 education.
Q2. How is it funded?
A2. Individual taxpayers may donate up to $1,700 per year to nonprofit Scholarship Granting Organizations (SGOs) like AAA Scholarship Foundation and receive a dollar-for-dollar tax credit to apply against their federal tax liability for that calendar year. AAA uses the donated funds to provide scholarships to eligible k-12 students which can be used for tuition, transportation, school supplies, and other educational expenses.
Q3. How does a student qualify for a scholarship?
A3. Students living in opt-in states with households earning up to 300% of their area’s median income are eligible to receive scholarships.
Q4. When does it start?
A4. The program begins on January 1, 2027.
Q5. When can I apply for a federal tax credit scholarship for my child?
A5. Please bookmark this page and check back often for more details about the federal tax scholarship program.
Q6. Does AAA have any scholarship we can apply for now?
A6. Click this link to find out more about the scholarships available now!