Understanding the Federal Scholarship Tax Credit Program
The Federal Scholarship Tax Credit Program is a financial aid initiative that allows individuals to redirect part of their federal income tax to help Kentucky students attend the public or private K–12 school that best meets their needs. The program provides funding for scholarships that can cover tuition, books, transportation, technology, and other approved education expenses.
From Contribution to Classroom
See how donors, SGOs, and schools work together to open doors for Kentucky families.
How you Benefit from the Program
Choose your path to see how you can take advantage
What Scholarships Can Cover
Scholarships supported through the Federal Scholarship Tax Credit Program can be used for many of the essential costs that come with choosing the right K–12 school.
Scholarships may help cover:
- Tuition and fees for eligible K–12 schools
- Books and classroom supplies needed throughout the year
- Technology, including laptops, tablets, and learning software
- Uniforms and transportation required by the school
- Tutoring and special needs support that helps students succeed
This range of allowable expenses gives families the flexibility to choose a school that supports their child’s academic, social, and developmental needs. The goal is simple: remove financial barriers so students can thrive.
Curious How It Works? Start Here.
Families with K–12 students in Kentucky can apply for scholarships if they meet the income guidelines set by the Federal Scholarship Tax Credit Program. Eligibility is based on household income, and whether the student is eligible to attend a K-12 school in Kentucky. Scholarship Granting Organizations (SGOs) verify all documentation and guide families through the process.
Individual donors can contribute any amount to a qualified Scholarship Granting Organization. However, only up to $1,700 per year qualifies for a 100 percent federal income tax credit. This tax credit ensures that eligible contributions incur no cost to the donor.
An SGO, or Scholarship Granting Organization, is a nonprofit that collects donations and awards scholarships to eligible K–12 students. SGOs verify family eligibility, prioritize students according to federal rules, distribute scholarship funds, and report on how donations are used. They serve as the connection point between donors, families, and schools.
Why This Program Matters for Kentucky
The Federal Scholarship Tax Credit Program expands access to education across the commonwealth by helping students attend the school that best supports their learning. The program strengthens communities by increasing opportunity, reducing financial barriers, and keeping education decisions in the hands of families. With support from individuals who participate in the tax credit, the program creates a simple path for Kentucky students to reach their full potential.
