NCEA Statement on Final Regulations Issued for Federal Scholarship Tax Credit
NCEA warns nonparticipating states could miss out on scholarship donations from their own residents as January 1 launch approaches
From NCEA
New guidance confirms $3,400 tax credit for married couples and scholarships to support both public and private school kids across America
NCEA warns nonparticipating states could miss out on scholarship donations from their own residents as January 1 launch approaches
Arlington, VA (October 1, 2026) — Dr. Steven F. Cheeseman, president/CEO of the National Catholic Educational Association (NCEA), issued the following statement in response to the U.S. Department of the Treasury and Internal Revenue Service's announcement of new regulations implementing the Federal Scholarship Tax Credit, also known as the Education Freedom Tax Credit. The guidance provides additional clarity for states, donors, and scholarship-granting organizations ahead of the program's January 1, 2027 launch, including confirmation that married couples filing jointly may qualify for up to $3,400 in federal tax credits for eligible contributions.
“Today's guidance from the Treasury Department provides important clarity ahead of the January 1 launch of the Federal Scholarship Tax Credit. One particularly significant development is the confirmation that married couples filing jointly can receive up to $3,400 in federal tax credits for qualifying contributions, rather than the previously understood $1,700 household limit. That increases the potential funding available to support educational opportunities for America's children.
“As we've emphasized from the beginning, this program is about more than making Catholic education more affordable for families who choose it. It can also benefit children who remain in public schools by supporting tutoring, special-needs services, educational technology, and other qualifying expenses. Most Catholic children attend public schools, and their educational needs matter deeply to us as well.
“With just three months until the program begins, governors who have not yet opted in face an important decision with real consequences for families in their states. The tax credit doesn't stop at state lines, but the scholarships do. Residents of states that choose not to participate can still receive federal tax credits for qualifying donations to scholarship organizations in participating states. However, those contributions would support children in other states rather than their own communities.
“As states make their participation decisions, families, schools, and scholarship organizations need certainty and time to prepare. At NCEA, our focus remains on expanding educational opportunities and helping children in public, private, and religious schools receive the support they need to succeed.”
For more information: https://ncea.org
