A New Federal Tax Credit is Opening Doors to Education

PHOENIX, Oct. 21, 2026 /PRNewswire/ -- Starting January 1, 2027, the new Education Freedom Tax Credit will allow individual taxpayers to receive a dollar-for-dollar tax credit against their federal tax liability for contributions to Scholarship Granting Organizations, also known as School Tuition Organizations, in Arizona.

For supporters of Catholic Education Arizona, Arizona has not yet opted into the Education Freedom Tax Credit. The Governor's race will determine whether and when Arizona opts in, either at the end of this year or in January 2027.

How Does the Education Freedom Tax Credit Work?

• Any U.S. citizen and resident who makes a qualified cash contribution to a participating Scholarship Granting Organization can claim the Education Freedom Tax Credit.
  
  
• Currently, the annual tax credit value for individuals is $1,700, while married couples filing jointly is $3,400. The federal tax credit will be separate and unique from state tax credits.
  
  
• If the state a taxpayer resides in does not opt in to the Education Freedom Tax Credit, the taxpayer may contribute to an eligible Scholarship Granting Organization in another state that has opted in.

How Can This Support Arizona Students?

• If Arizona participates, this new federal tax credit could help expand access to a quality Catholic education for the underserved, disabled, and foster students in Arizona, changing a child's life forever.
  
  
• Supporters can continue contributing their state tax liability to support Catholic Education Arizona. If Arizona opts into the federal program, we are prepared to accept supporters' federal tax liability.

Looking Ahead

• Catholic Education Arizona will continue to keep supporters updated as new information becomes available. Check their website regularly.
  
  
• At Catholic Education Arizona, we believe every student deserves a quality education that opens doors for their future.

Catholic Education Arizona is celebrating 30 years and is the largest provider of scholarships for families attending Catholic schools in the Diocese of Phoenix. Since 1998, Catholic Education Arizona has raised $408 million and awarded 165,000 scholarships, changing lives one scholarship at a time. To learn more, visit https://catholiceducationarizona.org/federal-scholarship-tax-credit/ or call (602) 671-2451.

Contact: Debra Preach, Chief Operating Officer
Catholic Education Arizona
[email protected]
(602)-671-2451

SOURCE Catholic Education Arizona