American Scholarship Network logo
Preparing for the 2027 Education Freedom Tax Credit

Opening Paths to Educational Opportunity

American Scholarship Network is building a trusted, compliance-first way for donors to support K-12 scholarships and for schools to turn new tax credit opportunities into meaningful help for students.

CPA-informed. Compliance-first. Built to serve students.

American Scholarship Network logo
Up to
$1,700
potential federal credit
Begins
2027
qualifying contributions
The opportunity

A New Opportunity for Students, Donors, and Schools

Beginning in 2027, eligible individual taxpayers may be able to claim a federal income tax credit of up to $1,700 for qualifying cash contributions to approved Scholarship Granting Organizations, commonly called SGOs. SGOs use qualifying contributions to provide scholarships for eligible K-12 students.
Tax deduction

Generally reduces taxable income

Tax credit

Generally reduces tax liability dollar for dollar

Eligibility and results depend on federal law, state participation, SGO approval, the donor's tax liability, and other applicable requirements.

How it works

A Straightforward, Four-Step Process

No tax background required — here is the plain-English version.
  1. 01

    A state participates

    A state participates in the federal program and identifies qualifying Scholarship Granting Organizations (SGOs).

  2. 02

    A taxpayer contributes

    An eligible taxpayer makes a qualifying cash contribution to a listed SGO.

  3. 03

    The SGO awards scholarships

    The SGO awards scholarships through an approved eligibility and award process.

  4. 04

    A credit may be claimed

    If all requirements are met, the taxpayer may claim a federal credit of up to $1,700.

Important facts to know

  • The federal program begins with qualifying contributions made in 2027.
  • The contribution must be cash.
  • The credit is nonrefundable.
  • Unused credit may be carried forward for up to five years, subject to applicable rules.
  • The federal credit is reduced by the value of any state tax credit received for the same contribution.
  • Donors cannot earmark contributions for a particular student or family.
  • Donors should consult their own tax advisor.
For Donors

Turn Tax Liability Into Scholarship Opportunity

ASN is preparing to help donors support eligible K-12 students through a compliant SGO structure while receiving the tax credit benefits allowed by law.

  • Plain-English education
  • Clear contribution documentation
  • Responsible scholarship administration
  • Transparent impact reporting
  • Compliance-focused processes
Join the Donor Interest List
For Schools

Build Scholarship Capacity Without Building It Alone

ASN helps schools prepare for scholarship funding without requiring school leaders to become tax credit experts, donor administrators, eligibility reviewers, and compliance officers.

  • Donor education materials
  • School-specific campaign support
  • Scholarship application workflows
  • Eligibility review processes
  • Award administration
  • Fund tracking and reporting
  • Compliance policies and documentation
Request a School Readiness Conversation
Timing matters

Why Schools Should Prepare Now

  • Families need greater affordability.
  • Tuition can limit enrollment and retention.
  • Donors need accurate, trustworthy guidance.
  • Scholarship operations require planning.
  • Schools need time to identify scholarship needs and build donor interest.
  • Waiting until the program launches may cost schools valuable momentum.

Five-step readiness checklist

  1. 1Estimate scholarship need.
  2. 2Select an internal school contact.
  3. 3Identify likely donor audiences.
  4. 4Build a donor interest list.
  5. 5Review existing tuition assistance procedures.
Start Your School Readiness Assessment
What ASN does

Scholarship Operations, Handled

A single, coordinated model built around donor trust and school simplicity.

Donor Education

Plain-English materials that help donors understand the opportunity and their responsibilities.

School Campaign Support

Practical guidance for schools introducing the opportunity to their own donor communities.

Scholarship Applications

Structured application workflows for families seeking scholarship consideration.

Eligibility Review

Consistent review of applications against written eligibility and priority policies.

Award Administration

Organized handling of scholarship approvals, notifications, and disbursement steps.

Donor Acknowledgments

Timely, accurate contribution documentation donors and their advisors can rely on.

Fund Tracking

Separate tracking of scholarship funds and administrative funds.

Compliance Documentation

Recordkeeping designed around applicable program requirements.

Impact Reporting

Transparent reporting on how contributions translate into scholarship support.

Ongoing Readiness Support

Continued guidance as federal and state requirements are finalized and implemented.

Our approach

Trust Requires More Than Good Intentions

ASN is being designed around responsible scholarship operations and careful documentation.

Contributions cannot be earmarked for a particular student.

Awards follow written eligibility and priority policies.

Scholarship money is used only for qualified educational expenses.

Donor, applicant, award, approval, and payment records are maintained.

Scholarship funds and administrative funds are tracked separately.

Student and family information is protected.

ASN retains control and discretion over scholarship awards.

At least 90 percent of applicable program income must be used for qualifying scholarships when required by law.

Federal and state guidance will be monitored as implementation develops.

General educational information, not individualized tax or legal advice.

Who this may help

Who Scholarships May Help

Federal eligibility generally includes K-12 students who meet each of the following.

General eligibility factors

  • Are eligible to enroll in a public elementary or secondary school
  • Live in a participating state
  • Meet applicable household income requirements
  • Complete the required scholarship application and review process

Federal law generally uses a household income limit of no more than 300 percent of area median gross income, subject to final rules and implementation guidance.

Potential qualified expenses

  • Tuition and fees
  • Books and supplies
  • Academic tutoring
  • Special-needs services
  • Certain school-related technology
  • Other qualified K-12 education expenses allowed by law

Not every expense, student, or application is guaranteed to qualify. Final eligibility depends on applicable law and program rules.

About ASN

Built for Clear, Practical Execution

American Scholarship Network is being developed as a CPA-informed, compliance-first scholarship operations organization. ASN is beginning with Ohio and nearby communities, with the goal of building a clean, repeatable model that can serve more students and schools over time.

Trust

Every process is built to be documented, transparent, and defensible.

Practical Support

Schools and donors get clear next steps, not tax-code jargon.

Educational Opportunity

Every decision is measured against one question: does this help a student?

Referral partners

Help Your Clients and Community Prepare

ASN is building relationships with trusted professionals who can help donors and schools understand the opportunity responsibly.

Become a Referral Partner
CPAsFinancial advisorsAttorneysSchool board membersFaith leadersCommunity partners
Questions

Frequently Asked Questions

Accurate, conservative answers in plain English.

A Scholarship Granting Organization, or SGO, is an approved organization that receives qualifying contributions and awards scholarships to eligible K-12 students according to written eligibility and award rules.

Get involved

Join the Interest List

Tell us a bit about yourself and we'll follow up as ASN's program takes shape.
Interest level*

ASN uses the information you submit only to respond to your interest and share relevant updates. We do not sell your information. See our Privacy Policy for details. Please do not include Social Security numbers or financial account information in any field.

Prepare Today. Create Opportunity Tomorrow.

Join American Scholarship Network as we build a trusted path connecting donors, schools, and students.