A new way to open doors for more students
Starting January 1, 2027, a new federal scholarship tax credit gives taxpayers another way to support student scholarships. At NativityMiguel Coalition schools, scholarships and strong support open the door to opportunity.
GET UPDATESHow the credit works
Gifts go to a qualified scholarship granting organization (SGO) that is on the approved list of a state that has opted in. The SGO awards the scholarships. Give through an NMC school's tax credit giving page (if the school is in a participating state) or through the NMC general scholarship pool, which supports students at NMC schools in participating states. These giving pages designate your gift as a federal tax credit gift for you. SGOs must serve students at more than one school.
Students from households at or below 300% of the Area Median Income for their metro area, at a qualifying school in a participating state.
When you file your 2027 federal tax return in spring 2028, you claim a dollar-for-dollar credit for gifts made in 2027. It is nonrefundable, and any unused portion carries forward for up to 5 years. The SGO, not the school, sends your tax acknowledgment with the donor number you will need.
Where the money goes
Key dates
Before you give
- Give in 2027 or later. Gifts made before January 1, 2027 do not qualify for the credit.
- Cash only. Check, card, or bank transfer. Stock, crypto, and in-kind gifts do not qualify for the credit.
- Use a tax credit giving page. Give through your school's or NMC's tax credit giving page so your gift is designated for the credit. Federal rules make that designation permanent once your gift is made.
- Choose where it goes. Designate an NMC school in a state that has opted in, or give to the NMC general scholarship pool if you do not want to pick a specific school.
- Couples: to reach $3,400, each spouse makes and designates their own gift.
What scholarships can cover
Under federal rules, scholarships can cover tuition and fees, and may also cover tutoring, books and supplies, transportation, uniforms, extended-day programs, and other costs of attending school. Each SGO and school sets its own award rules.
Where states stand
Each state decides whether to take part. As of October 2026, New York has opted in, and more states are still deciding. Your gift must go to an SGO approved by a state that has opted in, and any school you designate must be in a participating state. You can give wherever you live. See the current list of participating states: IRS list of participating states
Common questions
Can I choose which school my gift supports?
Yes, as long as the school is in a state that has opted in. If you would rather not pick a specific school, or the school you care about is in a state that has not joined yet, you can give to the NMC general scholarship pool, which supports students at NMC schools in participating states. Questions? Email us at info@nativitymiguel.org. There may still be a way to help.
When can I claim the tax credit?
Contributions open January 1, 2027. You claim the credit when you file your 2027 federal tax return, in spring 2028. The credit is nonrefundable, and any unused portion carries forward for up to 5 years.
Can I give directly to a school through this program?
Not directly. Contributions go to an SGO, which awards the scholarships; schools do not handle the money. Gifts made directly to a school work as they always have.
Which SGO should I give to?
NMC is evaluating scholarship partners and will share giving options before January 1, 2027. Whichever SGO you use, it must be on the approved list of a state that has opted in. Also look for an SGO that is a 501(c)(3), registered on the IRS SGO portal, and spending at least 90% of its income on scholarships.
Will this replace my current gift?
That is your call, and a tax advisor can help with the tax side. One thing to know: a credit gift funds scholarships through an SGO, while your annual gift to a school funds everything else, from teachers to programs to graduate support. Many supporters may choose to do both.
Does a gift I make in December 2026 count?
No. Only gifts made on or after January 1, 2027 qualify for the credit. A 2026 gift still counts as a regular charitable gift.
Can I give stock or crypto?
Not for the credit. Only cash gifts (check, card, or bank transfer) qualify. Gifts of stock or other assets can still be made as regular gifts.
Can my spouse and I get $3,400?
Under Treasury's proposed rules, yes, if each of you makes and designates your own gift. One joint check may not be split automatically.
Who sends my tax receipt?
The SGO sends your official tax acknowledgment, including the donor number you will need to claim the credit. You will report that number on IRS Form 8525 with your federal return. Schools do not issue the tax receipt for the credit.
I already get a state tax credit for scholarship gifts. Can I claim both?
You may be able to, but a state credit claimed on the same gift is subtracted before the federal credit is figured. Ask your tax advisor how this works for you.
Do I have to wait until 2028 to see the benefit?
Not necessarily. Because the credit applies to your 2027 taxes, some donors ask their tax advisor about updating their Form W-4 (or, if self-employed, their quarterly estimated payments) so the benefit shows up during 2027. Make the gift first, and do not adjust for more credit than you will actually claim. The IRS Tax Withholding Estimator can help.
What we are doing
The NativityMiguel Coalition is evaluating scholarship partners and working with our member schools on how this credit can help students and families. We will share giving options before January 1, 2027, and we will always put students first.
This page reflects IRS and Treasury guidance issued October 2, 2026, and details may change. It is general information, not legal, tax or financial advice. Please talk with your own tax advisor.