Skip to main content

Federal Education Tax Credit

Your taxes can change a child’s future.

Beginning January 1, 2027, a new federal program called the Education Freedom Tax Credit allows taxpayers to redirect a portion of the federal income taxes they already owe toward K–12 scholarships. North Carolina is a participating state, so NC families and donors can take part.

Gifts are made through an approved Scholarship Granting Organization (SGO). North Carolina will release its list of approved SGOs by February 15. Once it does, HGCS will choose its scholarship partner and announce it here, so check back for giving and application details.

How It Works

  1. You contribute up to $1,700 to an approved SGO.
  2. You claim a dollar-for-dollar federal tax credit on your next tax return.
  3. The SGO awards scholarships to help K–12 students attend schools like HGCS.

You don't need a child at HGCS to make a difference. Individuals can claim a credit of up to $1,700, and married couples filing jointly can claim up to $3,400. Because it's a tax credit, not a deduction, it reduces the federal taxes you owe dollar for dollar. You're directing money you would already pay toward a student's education.

This doesn't replace your regular giving to HGCS. It's an additional way to open doors to Christ-centered education in our community.

The tax credit program funds scholarships for K–12 students, and eligibility is based on household income. Once our SGO partner is announced, we will share how and when families can apply. In the meantime, explore NC State Scholarships to see what you may already qualify for.

  • Federal Education Tax Credit, IRC §25F
  • Nonrefundable credit for cash contributions to a qualified SGO
  • Up to $1,700 per individual taxpayer per year ($3,400 if married filing jointly)
  • Applies to contributions made on or after January 1, 2027
  • SGO partner and contribution documentation details coming soon

  • You don't need a child at HGCS to make a difference. Individuals can claim a credit of up to $1,700, and married couples filing jointly can claim up to $3,400. Because it's a tax credit, not a deduction, it reduces the federal taxes you owe dollar for dollar. You're directing money you would already pay toward a student's education.

    This doesn't replace your regular giving to HGCS. It's an additional way to open doors to Christ-centered education in our community.

  • The tax credit program funds scholarships for K–12 students, and eligibility is based on household income. Once our SGO partner is announced, we will share how and when families can apply. In the meantime, explore NC State Scholarships to see what you may already qualify for.

    • Federal Education Tax Credit, IRC §25F
    • Nonrefundable credit for cash contributions to a qualified SGO
    • Up to $1,700 per individual taxpayer per year ($3,400 if married filing jointly)
    • Applies to contributions made on or after January 1, 2027
    • SGO partner and contribution documentation details coming soon

Frequently Asked Questions

  • Not directly. Tax credit contributions go to an approved Scholarship Granting Organization, which awards scholarships to students. It's separate from giving to the HGCS Scholarship Fund, and you can do both.

  • No. The Opportunity Scholarship is a state program. The Federal Education Tax Credit is a new federal program funded by private contributions.

  • No. Taxpayers can contribute to an eligible organization regardless of where they live.

  • Contributions made on or after January 1, 2027, are eligible for the credit.

  • North Carolina will release its list of approved Scholarship Granting Organizations (SGOs) by February 15. When the list comes out, we’ll choose our partner and announce it here.

This information is provided for general purposes and is not tax advice. Please consult your tax advisor about your individual situation.