A new federal tax credit could create another source of scholarship assistance for private-school families in North Carolina, potentially helping make Christian education more affordable for many families.
Please take a few minutes to read the information below. This is a new program, and we want WCA families to be aware of what it could mean for them as additional details become available.
Beginning in 2027, the new Education Freedom Tax Credit will allow individuals to receive a federal tax credit of up to $1,700 for qualifying cash donations made to approved Scholarship Granting Organizations. Those organizations will then use contributions to provide educational scholarships to eligible students. North Carolina has officially elected to participate in the program.
It is important to note that this is not a $1,700 tuition credit that parents claim directly. The tax credit is provided to individuals who contribute to qualifying scholarship organizations. Those organizations can then provide scholarship assistance to eligible families for expenses such as private-school tuition, tutoring, special-education services, and transportation.
Students from households earning up to 300% of their area’s median income may be eligible for scholarships. An analysis cited by Carolina Journal estimates that approximately 93% of North Carolina students could potentially meet the income eligibility requirement.
The program begins in January 2027, although several details regarding approved scholarship organizations and the distribution of scholarship funds are still being finalized.
This program will be separate from North Carolina’s Opportunity Scholarship, potentially providing another source of assistance for families seeking Christian education.
WCA will continue following the development of this program and will share additional information with our families as application procedures and scholarship opportunities become available.
A North Carolina family was recently featured at a White House event discussing how school-choice programs have helped their children and what this new program could mean for families beginning in 2027: