Federal Scholarship Tax Credit
Coverage of Federal Scholarship Tax Credit in the Nexus archive.
- Some Microschools in Limbo While Awaiting New Federal Tax Credit Rules
The new Federal Scholarship Tax Credit has left microschool leaders uncertain about eligibility, as the Treasury Department's guidance clarifies that scholarships apply to public, private, or religious schools. States like Florida, Ohio, and Tennessee plan to participate, but microschools operating outside traditional private school sectors face ambiguity.
- New York joins federal school choice initiative despite traditional Democrat opposition
New York is set to join a federal school choice initiative, becoming the 30th state and second Democratic-led state to opt-in, marking a significant policy shift for Governor Kathy Hochul. The program allows individual taxpayers to receive a dollar-for-dollar federal income tax credit for donations made to Scholarship Granting Organizations. This move follows similar actions by Colorado Governor Jared Polis, who became the first Democrat to break ranks and join the program in January 2026.