American Scholarship Network has built a trusted, compliance-first way for donors to support K-12 scholarships through the new Federal Scholarship Tax Credit, and for schools to turn that opportunity into meaningful help for students.
CPA-informed. Compliance-first. Built to serve students.
The annual credit limit for an individual taxpayer's qualified cash contributions to eligible SGOs.
The proposed regulations confirm that a married couple filing a joint return may claim a combined credit of up to this amount.
Treasury reports 30 states have elected to participate. Ohio appears on the IRS participating-state list as of September 14, 2026.
Donors can give across state lines
Taxpayers may contribute to an eligible SGO in any participating state, regardless of where they live.
Donors can rely on the IRS SGO list
Taxpayers generally may rely on an organization's inclusion on the IRS list of eligible SGOs when making a contribution.
State and federal credits are coordinated
A taxpayer-favorable ordering rule is intended to preserve the maximum federal credit for donors who also qualify for a state tax credit.
Unused credit carries forward
The credit is nonrefundable. Unused amounts may generally be carried forward for up to five years.
Broad student eligibility
The household-income test would generally disregard non-cash items, and streamlined verification applies to certain families. Treasury estimates about 96% of children in participating states would be eligible.
No Social Security numbers collected by SGOs
SGOs will issue donor acknowledgments with unique donor numbers and report contributions through an IRS portal, so SGOs do not need to collect donors' Social Security numbers.
States cannot narrow school choice
Participating states would not be permitted to impose SGO requirements stricter than federal law, including limits on the type of school a scholarship recipient attends.
Stronger safeguards for scholarship funds
The rules call for annual SGO reporting and audits, verification requirements, and procedures to remove organizations that fail to meet the rules.
These are proposed regulations. Public comments are due December 1, 2026, and the rules may change before they are finalized. Taxpayers, states, and SGOs may rely on the proposed regulations for qualified contributions beginning January 1, 2027. ASN will keep monitoring federal and Ohio guidance and share updates with registered donors and partner schools.
Primary sources (reviewed October 2, 2026)
General educational information, not individualized tax or legal advice. Credit-eligible contributions begin January 1, 2027.
Reduces taxable income
Reduces tax liability dollar for dollar
Eligibility and results depend on federal law, state participation, SGO approval, the donor's tax liability, and other applicable requirements.
A state elects to participate in the federal program and certifies qualifying Scholarship Granting Organizations (SGOs) to the IRS. Ohio is among the 30 states that have opted in for 2027.
An eligible taxpayer makes a qualifying cash contribution to a listed SGO and receives an acknowledgment with a unique donor number.
The SGO awards scholarships through an approved eligibility and award process.
If all requirements are met, the taxpayer may claim a federal credit of up to $1,700, or up to $3,400 for married couples filing jointly.
ASN helps donors support eligible K-12 students through a compliant SGO structure while receiving the tax credit benefits allowed by law.
ASN brings scholarship funding to schools without requiring school leaders to become tax credit experts, donor administrators, eligibility reviewers, and compliance officers.
Plain-English materials that help donors understand the opportunity and their responsibilities.
Practical guidance for schools introducing the opportunity to their own donor communities.
Structured application workflows for families seeking scholarship consideration.
Consistent review of applications against written eligibility and priority policies.
Organized handling of scholarship approvals, notifications, and disbursement steps.
Timely, accurate contribution documentation donors and their advisors can rely on.
Separate tracking of scholarship funds and administrative funds.
Recordkeeping built around Section 25F and Ohio program requirements.
Transparent reporting on how contributions translate into scholarship support.
Continued guidance as federal and state requirements evolve, including final regulations.
Contributions cannot be earmarked for a particular student.
Awards follow written eligibility and priority policies.
Scholarship money is used only for qualified educational expenses.
Donor, applicant, award, approval, and payment records are maintained.
Scholarship funds and administrative funds are tracked separately.
Student and family information is protected.
ASN retains control and discretion over scholarship awards.
At least 90 percent of applicable program income must be used for qualifying scholarships when required by law.
Donors receive written acknowledgments with IRS unique donor numbers, so ASN does not need donors' Social Security numbers.
Qualified contributions are reported to the IRS through its SGO portal, with annual reporting and audits.
ASN monitors federal and state guidance continuously, including the final version of the October 2026 proposed regulations.
General educational information, not individualized tax or legal advice.
Federal law generally uses a household income limit of no more than 300 percent of area median gross income, subject to final rules and implementation guidance.
Not every expense, student, or application is guaranteed to qualify. Final eligibility depends on applicable law and program rules.
Every process is built to be documented, transparent, and defensible.
Schools and donors get clear next steps, not tax-code jargon.
Every decision is measured against one question: does this help a student?
ASN works with trusted professionals who help donors and schools understand the opportunity responsibly.
With federal rules now released, year-end planning conversations are the natural time to raise the credit. Know a tax advisor, accountant, or colleague who should hear about it? Point them to the ASN update above, or invite them to join as a referral partner.
Become a Referral PartnerASN uses the information you submit only to respond to you and share relevant updates. We do not sell your information. See our Privacy Policy for details. Please do not include Social Security numbers or financial account information in any field.
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