The Federal School Scholarship Tax Credit

A New Opportunity for Families and Donors (Effective 2027)

For the first time, federal tax law includes a nationwide tax credit for education scholarships, empowering individuals to support K–12 students through qualified Scholarship Granting Organizations (SGOs).

How it works:
Taxpayers may claim a dollar-for-dollar federal tax credit up to $1,700 for contributions to an SGO that awards tuition scholarships to eligible students attending accredited independent or parochial schools.

State participation required:
Each state must opt into the program for residents to qualify. If Maryland participates, St. Mary’s Ryken expects to partner with an eligible SGO to expand scholarship access for local families.

Qualified educational expenses include:
Tuition, fees, tutoring, books, technology, transportation, and other approved costs.

Why it matters:
This credit represents a major step toward expanding access to independent school education, allowing donors to turn tax savings into direct support for students and their families.

💬 Take Action: Make Your Voice Heard

How MD is Responding

Maryland is currently in debate and indecision about the new federal "School Choice Credit," a dollar-for-dollar tax credit (up to $1,700) passed last summer.

While the federal program is slated to begin in 2027, state participation depends on governors' individual approval.

Current Official Response

Governor's Stance: Governor Wes Moore has remained undecided, stating that his administration has not yet fully examined how the specific "caveat" for state approval will impact Maryland.

Legislative Status: As of late 2025 and early 2026, the decision to opt into the program remains "up in the air" within the General Assembly.

You Can Help NOW

Make sure your voice is heard! Write to your Senators and Delegates.

A sample email is below:

Subject: Support HB 0455 / SB 0329 – Opting In on Opportunity Act

Dear [Delegate/Senator Last Name],

I am writing to urge your support for HB 0455, the “Opting In on Opportunity Act,” scheduled for a hearing in the Ways and Means Committee on February 26 at 1:00 p.m. This legislation is cross-filed in the Senate as SB 0329 which is scheduled for February 25 at 1:00 p.m., reflecting strong interest in expanding educational opportunity for Maryland families.

HB 0455 / SB 0329 would allow Maryland to join more than 20 other states that have opted into the federal education tax credit program. This would provide scholarships of up to $1,700 per student to help families offset K–12 educational expenses at the school of their choice.

Many schools already invest significant resources in financial aid and affordability efforts, yet rising costs continue to challenge families. By opting into this federal program, Maryland can help ease that burden without drawing from the state’s general fund, instead leveraging federal tax credits to expand educational choice and access.

Importantly, these credits may also support public school students, helping cover out-of-pocket costs such as books, transportation, tutoring, or specialized services.

As you prepare for the upcoming hearing, I respectfully ask that you support HB 0455 / SB 0329 and advocate for a favorable report. This legislation is a practical, fiscally responsible way to support Maryland students and families.

Thank you for your time and consideration.

Sincerely,
[Your Name]
[Your City / District]

Committee Info

Current Status 2026 Regular Session - For Tracking list: Federal Tax Credit - School Choice (All Bills)

House Ways & Means Committee

Delegate Derrick Coley (D)
317 Lowe House Office Building
6 Bladen Street
Annapolis, MD 21401
derrick.coley@house.maryland.gov
410-841-3691

Delegate Eric Ebersole (D)
305 Lowe House Office Building
6 Bladen Street
Annapolis, MD 21401
eric.ebersole@house.maryland.gov
410-841-3328

Delegate Jessica Feldmark (D)
131 Taylor House Office Building
6 Bladen Street
Annapolis, MD 21401
jessica.feldmark@house.maryland.gov
410-841-3205

Delegate Mike Griffith (R)
423 Lowe House Office Building
6 Bladen Street
Annapolis, MD 21401
mike.griffith@house.maryland.gov
410-841-3444

Delegate Wayne A. Hartman (R)
213 Lowe House Office Building
6 Bladen Street
Annapolis, MD 21401
wayne.hartman@house.maryland.gov
410-841-3356

Delegate Kevin B. Hornberger (R)
325 Lowe House Office Building
6 Bladen Street
Annapolis, MD 21401
kevin.hornberger@house.maryland.gov
410-841-3284

Delegate Robert B. Long (R)
320 Lowe House Office Building
6 Bladen Street
Annapolis, MD 21401
robert.long@house.maryland.gov
410-841-3458

Delegate Bernice Mireku-North (D)
222 Lowe House Office Building
6 Bladen Street
Annapolis, MD 21401
bernice.mireku-north@house.maryland.gov
410-841-3539

Delegate April Miller (R)
226 Lowe House Office Building
6 Bladen Street
Annapolis, MD 21401
april.miller@house.maryland.gov
410-841-3288

Delegate Cheryl E. Pasteur (D)
306 Lowe House Office Building
6 Bladen Street
Annapolis, MD 21401
cheryl.pasteur@house.maryland.gov
410-841-3448

Delegate Julie Palakovich Carr (D)
202 Lowe House Office Building
6 Bladen Street
Annapolis, MD 21401
julie.palakovichcarr@house.maryland.gov
410-841-3037

Delegate Edith J. Patterson (D)
429 Lowe House Office Building
6 Bladen Street
Annapolis, MD 21401
edith.patterson@house.maryland.gov
410-841-3247

Delegate Kent Roberson (D)
219 Lowe House Office Building
6 Bladen Street
Annapolis, MD 21401
kent.roberson@house.maryland.gov
410-841-3557

Delegate Joe Vogel (D)
224 Lowe House Office Building
6 Bladen Street
Annapolis, MD 21401
joe.vogel@house.maryland.gov
410-841-3103

Delegate Greg Wims (D)
224 Lowe House Office Building
6 Bladen Street
Annapolis, MD 21401
greg.wims@house.maryland.gov
410-841-3039

Delegate Jheanelle K. Wilkins (D)
Chair, Ways & Means Committee
131 Taylor House Office Building
6 Bladen Street
Annapolis, MD 21401
jheanelle.wilkins@house.maryland.gov
410-841-3493

Delegate Caylin Young (D)
317 Lowe House Office Building
6 Bladen Street
Annapolis, MD 21401
caylin.young@house.maryland.gov
410-841-3429

Senate Education, Energy & the Environment Committee

Senator Dalya Attar (D)
122 James Senate Office Building
11 Bladen Street
Annapolis, MD 21401
dalya.attar@senate.maryland.gov
410-841-3697

Senator Mary Beth Carozza (R)
316 James Senate Office Building
11 Bladen Street
Annapolis, MD 21401
marybeth.carozza@senate.maryland.gov
410-841-3645

Senator Brian J. Feldman (D)
Chair
2 West Miller Senate Office Building
11 Bladen Street
Annapolis, MD 21401
brian.feldman@senate.maryland.gov
410-841-3169

Senator Jason C. Gallion (R)
420 James Senate Office Building
11 Bladen Street
Annapolis, MD 21401
jason.gallion@senate.maryland.gov
410-841-3603

Senator Kevin M. Harris (D)
302 James Senate Office Building
11 Bladen Street
Annapolis, MD 21401
kevin.harris@senate.maryland.gov
410-841-3700

Senator Katie Fry Hester (D)
304 James Senate Office Building
11 Bladen Street
Annapolis, MD 21401
katiefry.hester@senate.maryland.gov
410-841-3671

Senator Cheryl C. Kagan (D)
Vice Chair
2 West Miller Senate Office Building
11 Bladen Street
Annapolis, MD 21401
cheryl.kagan@senate.maryland.gov
410-841-3134

Senator Bryan W. Simonaire (R)
320 James Senate Office Building
11 Bladen Street
Annapolis, MD 21401
bryan.simonaire@senate.maryland.gov
410-841-3658

Senator Mary Washington (D)
104 James Senate Office Building
11 Bladen Street
Annapolis, MD 21401
mary.washington@senate.maryland.gov
410-841-3145

Senator Ron Watson (D)
121 James Senate Office Building
11 Bladen Street
Annapolis, MD 21401
ron.watson@senate.maryland.gov
410-841-3631

SMC Contacts

District 27 (Calvert, Charles & Prince George's Counties)

Senator Kevin M. Harris (D) Email: kevin.harris@senate.maryland.gov

Delegate Darrell C. Odom, Sr. (D) – District 27A Email: darrell.odom@house.maryland.gov

Delegate Jeffrie E. Long, Jr. (D) – District 27B Email: jeffrie.long@house.maryland.gov

Delegate Mark N. Fisher (R) – District 27C Email: mark.fisher@house.maryland.gov

District 28 (Charles County)

Senator Arthur Ellis (D) Email: arthur.ellis@senate.maryland.gov

Delegate Debra M. Davis (D) Email: debra.davis@house.maryland.gov

Delegate Edith J. Patterson (D) Email: edith.patterson@house.maryland.gov

Delegate C. T. Wilson (D) Email: ct.wilson@house.maryland.gov

District 29 (St. Mary's & Calvert Counties)

Senator Jack Bailey (R) Email: jack.bailey@senate.maryland.gov

Delegate Brian M. Crosby (D) – District 29B Email: brian.crosby@house.maryland.gov

Delegate Todd B. Morgan (R) – District 29C Email: todd.morgan@house.maryland.gov

Delegate Matthew Morgan (R) – District 29A Email: Matt@VoteForMattMorgan.com

Not in Southern MD or unsure who represents you? Find Your Representative here Maryland General Assembly "Who Represents Me?" tool.

Contact Gov. Moore

You can copy and personalize the message below when writing to Governor Moore:

Subject: Support Maryland’s Participation in the Federal School Scholarship Tax Credit Program

Dear Governor Moore and Members of the Maryland General Assembly,

I am writing to encourage the State of Maryland to opt into the new Federal School Scholarship Tax Credit Program, which will expand access to high-quality education for students across our state.

This federal program allows individuals to receive a dollar-for-dollar federal tax credit for contributions to scholarship organizations that help families afford tuition at accredited K–12 schools, including Catholic and independent schools that strengthen our communities.

Maryland students and families deserve to benefit from this opportunity. Please support Maryland’s participation in the program and help ensure that every child has access to the education that best meets their needs.

Sincerely,
[Your Name]
[Your City, MD]

🏛️ Mailing Address for Governor Wes Moore

The Honorable Wes Moore
Governor of Maryland
100 State Circle
Annapolis, MD 21401-1925

📬 Letters may also be sent online through the Governor’s contact form:
https://governor.maryland.gov/contact-us/

Follow the Bills

HB0455; Education - Certification of Scholarship Granting Organizations (Opting in on Opportunity Act); Sponsored by Delegates Miller, Wivell, Adams, Anderson, Arentz, Baker, Beauchamp, Bouchat, Buckel, Ciliberti, Ghrist, Griffith, Hartman,; Hinebaugh, Hornberger, Howard, Hutchinson, Jacobs, Kipke, R. Long, Mangione, T. Morgan, Nkongolo, Pippy, Reilly, Rose, Tomlinson, and Valentine

Status: In the House - Hearing 2/26 at 1:00 p.m.

Follow HB0455: SB0329; Education - Certification of Scholarship Granting Organizations (Opting in on Opportunity Act)
Sponsored by Senator Folden

Status: In the Senate - Hearing 2/25 at 1:00 p.m.

Follow SB0329

For more information, visit:

📄 EdChoice: Congress Enacts First-Ever Federal Tax Credit for Education Scholarships
🎙️ The Catholic School Leaders Podcast

Questions about the program may be addressed to:

Michele Minicozzi, Director of Development

📧 development@smrhs.org
📞 301-373-4162

Federal Tax Credit FAQs

Am I eligible to donate?

Who can I donate to?

Who is eligible for scholarship funding?

Eligible students must meet the criteria in the federal law:

They must come from a household with income not more than 300% of the area median gross income (AMGI) for the locality in which they live.
They must be eligible to enroll in a public elementary or secondary school (i.e., living in the local school district).
In practical terms, the “300% of AMGI” threshold means that in many areas most families will fall under the limit—some estimates suggest around 90% of U.S. children could qualify on that basis.

How does it work?

A donor makes a cash contribution to a participating SGO in a state that has opted into the program.
The SGO distributes scholarships to eligible students to the school of choice (based on income & school-enrollment criteria) for approved K–12 educational expenses.
The donor receives a federal tax credit (dollar-for-dollar) for their contribution—offsetting their tax liability.
Participating states and SGOs must comply with reporting, verification, and oversight requirements.

Can I donate toward my child’s tuition?

Unfortunately, federal law prohibits donors from receiving any direct or indirect benefit from their own contributions.
This means that parents cannot use donations made through an SGO to offset or fund their own child’s tuition.

However, when families and friends of the St. Mary’s Ryken community contribute together, those gifts have a powerful collective impact—expanding scholarship opportunities, keeping tuition more affordable for all students, and helping the school manage rising operational costs while sustaining excellence in Catholic education.

How much does it cost me to make this donation?

The answer is, very little—or nothing at all.

Because the Federal School Scholarship Tax Credit provides a dollar-for-dollar federal tax credit (up to $1,700 per taxpayer), your contribution amount is directly subtracted from your federal tax bill.

For example:
If you owe $5,000 in federal taxes and contribute $1,000 to an approved Scholarship Granting Organization (SGO), your federal tax owed would be reduced to $4,000.

While your out-of-pocket cost depends on your individual tax situation, most donors experience little to no net cost—and the impact of your gift is immediate, providing tuition assistance to deserving students and families.

Will this divert money from Public Schools?

This program does not use Maryland general fund dollars.
It does not change the Blueprint formula.
It does not reduce state or local aid to public schools.
It leverages a federal tax credit that exists whether Maryland participates or not.
If Maryland does not opt in, our taxpayers’ contributions will simply fund scholarships in other states.

Bottom Line: There is no reduction in public school funding.

Is this Privatization?

This is not a voucher program funded by state dollars.
It is a federally incentivized charitable contribution model.
Public schools continue to operate, receive funding, and serve the majority of students.
In Pennsylvania, scholarship tax credit programs have operated for 25 years while public schools expanded programming and funding.

Bottom Line: Public schools and scholarship programs can and do coexist successfully.

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