INDIANA – Governor Mike Braun is encouraging both current and prospective Indiana Scholarship Granting Organizations (SGOs) to take advantage of the new federal education tax credit by applying now to become an approved SGO. Beginning in 2027, Hoosiers who make charitable donations to approved SGOs can collect up to $1,700 in federal tax savings for investments made in K-12 scholarships. This is in addition to any state tax credits they may receive.
Before this new federal education tax credit takes effect, now is the time to apply to become an approved SGO.
Qualified SGOs receive funding for school scholarships through private, charitable donations, which are then awarded to eligible Indiana students. Families can access these scholarships through approved SGOs to help cover qualified educational expenses, including tuition, fees, special education services, books, supplies, technology, tutoring, before- and after-school programs, and other qualified costs for children attending public or private schools.
“In Indiana, we want every parent to be able to choose the best education for their child, and cost shouldn’t stand in the way of giving them that opportunity,” said Governor Braun. “This new federal tax credit will help bring more scholarship dollars to Indiana, making educational expenses like tuition, books, and supplies more affordable for Hoosier families, empowering them to pursue the best education for their child’s unique needs.”
The U.S. Department of the Treasury and the Internal Revenue Service issued proposed regulations on October 1, outlining implementation requirements for participating states. Indiana moved quickly to develop and launch the SGO application for 2027, which is now live on the Indiana Department of Education’s (IDOE’s) website.
“Every child deserves the opportunity to reach their full potential, and every family deserves the freedom to find the educational environment where their child can thrive,” said Dr. Katie Jenner, Indiana Secretary of Education. “By expanding access to K‑12 scholarships, families across Indiana can more easily access tutoring, technology, and meaningful before‑ and after‑school programs that enrich learning across all communities. This is a powerful step forward, ensuring every student has the support, confidence, and opportunities they need to succeed.”
Beginning January 1, 2027, anyone, including individuals from out of state, will be eligible for a nonrefundable federal tax credit of up to $1,700 for contributions to approved Indiana SGOs or up to $3,400 for married couples filing jointly. Any unused credit may be carried forward for up to five years. IDOE will post an approved list of SGOs on its website by December 31 each year for the next calendar year.
