Scholarship Tax Credit for Afterschool

A new federal scholarship tax credit has the potential to become a funding source for afterschool and summer programs.

A new federal scholarship tax credit has the potential to become a funding source for afterschool and summer programs.

How would it work?

The regulation offers taxpayers a federal tax credit of up to $1,700 for contributions made to a Scholarship Granting Organization (SGO). SGOs provide scholarships to students for education-related services at private or public schools, including supports such as afterschool programming. The parameters and rules around this new policy are not yet set, and key levers will affect whether and how the credit functions in your area.

What’s next?

The Afterschool Alliance aims to inform the development and implementation of the tax credit policy so that it has the greatest potential to help local afterschool and summer learning programs provide quality programming. Once the regulation is set, funding available for students and programs in your state will depend on the actions of parents, nonprofits, program providers, and lawmakers. Join our biweekly Policy Pulse email list to stay looped in on the latest developments!

Learn More

Potential Funding Opportunity for Afterschool and Summer in 2027 Scholarship Tax Credit

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Webinars

The STEM Talk | Special Episode: Tax Credits for Afterschool

Watch the webinarRead the FAQ

Blogs

Potential funding opportunity for afterschool and summer in 2027 Scholarship Tax Credit
(2/4/2026)
Treasury and IRS reviewing public comments on the Federal Tax Credit Scholarship
(1/16/2026)
Treasury takes first step in rule-making process on Federal Educational Tax Scholarship Program – afterschool field is encouraged to weigh in
(12/12/2025)
New educational tax credit holds potential opportunities for afterschool
(9/5/2025)