With the passage of One Big Beautiful Bill Act, United States has entered a new era of educational freedom where parents can have direct power over the education of their children. Federal Tax Credits for Scholarship (FTCS) program is designed to provide scholarships for qualifying families of K-12 students.
As of January 28th, 2026, 26 states, including Nevada, have opted into the FTCS.
Under the program, individuals may receive a federal income tax credit of up to $1,700 per year for donations made to U.S. Treasury–approved Scholarship Granting Organizations (SGOs). These organizations use donated funds to provide scholarships to eligible K–12 students for approved educational uses.
The program will officially launch starting January 1st, 2027.
The program is administered by the U.S. Department of Treasury and individual state-based SGOs, so the following webpage will be updated as more information becomes available.
Families do not apply directly to the federal government. Instead, applications are sent to a participating Scholarship Granting Organization. The SGO then will determine eligibility and awards scholarships to be used for approved expense categories.
Eligible students are (a) enrolled/eligible to enroll in a public elementary or secondary school and (b) members of a household of income no greater than 300% of the area median gross income.
As of 2023, median household income in Clark County, for example, is $73,845. This means that children from households making up to $227,535 will be eligible to receive the scholarship.
School-related instructional costs
School-required services and supports
Education-related technology
*Important note on software:
Computer software designed primarily for sports, games, or hobbies does not qualify unless it is predominantly educational in nature.
Application procedures and requirements will be designed by SGOs after they become eligible. A current list of participating SGOs, participation eligibility rules, and application timelines will be posted here as they become available.
This is a dollar-for-dollar federal tax credit — not a tax deduction. Donors who contribute to an approved Scholarship Granting Organization (SGO) may claim a federal income tax credit of up to $1,700, meaning the amount of the credit directly reduces the taxes owed, dollar for dollar. Unlike a deduction, which only reduces taxable income, a tax credit reduces the final tax bill itself, making the benefit more direct and predictable. Married couples filing jointly may claim up to $3,400.
As the funded eligibility is entirely dependent on private donations, so will be the average scholarship size. Simply put – more donations mean more scholarships.
SGOs participating in the federal program must align with requirements outlined in the OBBBA and forthcoming Treasury guidance.
Currently, Nevada has 6 SGOs administering the state’s only private school choice alternative – the Opportunity Scholarship. These SGOs do not automatically qualify for the federal program.
Importantly, SGOs will serve as the day-to-day implementation vessel of the program ensuring access, compliance, and reporting.
Education providers and schools do not have to directly apply to be included in the program. Furthermore, participation in the federal tax credit scholarship program does not grant the federal government influence over curriculum control or mandate policy changes.
Schools may accept scholarship funds if families choose to use them, subject to SGO procedures and applicable law.
This program represents a new, voluntary education funding option for Nevada—driven by families, supported by private donors, and administered outside the traditional government system.
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