EDUCATION FREEDOM TAX CREDIT
In 2025, the U.S. Congress passed a new federal tax credit to fund scholarships nationwide. OSN looks forward to serving as a Scholarship Granting Organization when the tax credit goes into effect January 1, 2027.
Any taxpayer with federal income tax liability will be able to contribute up to $1700 to OSN. Those contributions will then be used to fund K-12 private school scholarships for Nebraska kids. An
Your contribution to Opportunity Scholarships of Nebraska (OSN) will qualify for a dollar-for-dollar federal income tax credit on your 2027 tax return. Individual taxpayers can contribute up to $1700 to OSN or any qualified scholarship granting organization starting January 1, 2027.
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Email us at givehope@nebraskaopportunity.org with any questions!
Education Freedom Tax Credit
How does the Education Freedom Tax Credit work?
Using the Education Freedom Tax Credit, taxpayers can receive a credit of up to $1,700 for contributions made to Scholarship Granting Organizations (SGOs) that would otherwise have been owed to the government in Federal income taxes. A tax credit reduces the amount of Federal income tax owed dollar-for-dollar (unlike a deduction, which decreases taxable income). The tax credit is available to any individual who is a citizen or resident of one of the States or the District of Columbia and makes qualified contribution(s) to SGO(s) during the taxable year.
Who can claim the Education Freedom Tax Credit?
Any individual who is a citizen or resident of one of the fifty States or the District of Columbia may claim the credit if the individual makes a charitable contribution to an SGO such as OSN for that taxable year. OSN will then use contributions to fund scholarships for eligible students.
Can I use my contribution to help kids at a particular school?
With OSN, you will be able to designate a portion of your contribution to benefit kids who choose the school that matters most to you. Taxpayers cannot, however, designate a specific beneficiary with their contribution.
Which students qualify for scholarships through the Education Freedom Tax Credit?
An eligible student who qualifies for a scholarship through the Education Freedom Tax Credit is one who can enroll in a public K-12 school and from a household with income not greater than 300% of the area’s median gross income. Practically, that means most Nebraska K-12 students will be eligible to apply for an Education Freedom Scholarship.
Want to make a tax-deductible charitable gift?
OSN is a 501(c)(3) nonprofit organization, so you can give a tax-deductible charitable donation to OSN at any time without limit to help us get off the ground running and educate Nebraska families and students about the new scholarship program.
Opportunity Scholarships of Nebraska has been recognized as exempt from income tax under Section 501(c)(3) of the Internal Revenue Code. You should consult your personal tax advisor about the deductibility of your contribution and your record keeping obligations.
