THE EDUCATION FREEDOM TAX CREDIT · OPENS JANUARY 2027

Helping families afford Catholic education

A new federal tax credit will soon let you fund Catholic education dollar-for-dollar — up to $1,700 a year, at no net cost to you. We exist to make this simple for Catholic donors, schools, and families.

THE OPPORTUNITY

What is the Education Freedom Tax Credit?

Starting in 2027, taxpayers can give up to $1,700 to a scholarship granting organization (such as Catholic Education Fund), and receive a dollar-for-dollar tax credit back on their 2027 taxes. The money you would have sent to the government is then sent as a scholarship to the Catholic diocese or school of your choice.

States must opt-in to participate in the federal program.

~90% of students in opted-in states can receive these scholarships.

Scholarships can be used for tuition, support services for students with disabilities, tutoring, books, and more.

Where it’s happening

~30 states are opted-in for 2027

Frequent questions

Find answers about the fund, how it works, and your role in supporting Catholic education.

  • What is Catholic Education Fund?

    Catholic Education Fund is a Scholarship Granting Organization (SGO) run as an initiative of Aequitas in partnership with ACE Scholarships. It is being built to help dioceses and Catholic schools participate in the federal scholarship opportunity through a shared fundraising, compliance, and scholarship administration model. Our goal is to help Catholic education access national donor support without requiring every local partner to build a full SGO operation on its own.

  • What does Catholic Education Fund handle?

    We are building the national machinery so local Catholic leaders do not have to. That includes donor outreach, program administration, compliance support, scholarship workflows, reporting, and the underlying platform infrastructure needed to operate at scale. Through ACE, this can include co-branded portals, donation processing, eligibility management, dashboards, onboarding, and support.

  • What remains under diocesan or school leadership?

    Your diocese or school remains central to local stewardship, school participation, mission alignment, and relationships on the ground. Our model is meant to support Catholic leadership at the local level, not replace it. That is the point of the partnership: national support in service of local Catholic responsibility.

  • When does this become available?

    The federal scholarship tax credit is scheduled to begin on January 1, 2027. To participate, a state or the District of Columbia must choose to opt in and provide the IRS with a list of qualifying SGOs in that state.

  • Which states can participate?

    Only participating states can be served under the federal credit. The IRS has published a list of states that have made an advance election for 2027, and additional implementation guidance is still being issued. We will work with partners based on where the program is legally available and operationally ready.

  • Who can donate under the federal credit?

    Under current federal law, the credit applies to certain cash contributions made by individual U.S. citizens or residents to qualifying SGOs, up to $1,700 per taxpayer each year. The credit is nonrefundable, and federal rules also reduce the credit by any state credit claimed on the same contribution.

  • Who can receive scholarships?

    From households earning up to 300% of the area median income, who are enrolled or eligible to enroll in public school. Scholarship dollars can be used for: private school tuition, educational technology, tutoring and special education services, dual enrollment, AP exams, and more.

LEARN MORE
UPDATES

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