Federal Scholarship Tax Credit

The new Federal Tax Credit Scholarship Program allows donors to turn their tax dollars into scholarships for Memphis students at no net cost to you.

Starting on January 1st, 2027, individuals can receive a dollar-for-dollar federal tax credit, up to $1,700. This means you’ll receive your entire donation back when you file your 2027 federal income tax return. 

• Up to a $1,700 dollar-for-dollar federal tax credit for individuals

• Married couples filing jointly can claim a combined credit of up to $3,400 when each spouse gives $1,700

The great news is that this program offers a tax credit, not a deduction. A dollar of tax credit is much more valuable than a dollar of tax deduction. While a deduction lowers your taxable income, a credit directly reduces the amount of federal tax you owe.

Any taxpayer with federal liability can choose to redirect part of their federal tax payment to fund need-based scholarships for Memphis students. You can receive the tax credit whether or not you itemize. We encourage you to speak with your tax professionals to determine your specific tax situation and whether this opportunity can benefit you.

100%.

No, gifts made through DAFs are not eligible for a federal tax credit since the donor already received a tax deduction when they originally contributed to the fund. Many of our supporters will make the most of their charitable contributions from their DAF and additionally support The Collegiate School of Memphis to leverage the impact and tax credit of the SGO scholarship programs.

Yes! The latest federal guidance states that you can carry the credit forward up to five years.

Not everyone owes federal taxes. Please consult your tax advisor to determine whether you qualify for this new program.

Yes. To direct your gift toward Collegiate scholars and qualify for the federal credit, your contribution must go through Memphis Opportunity Scholarship Trust (MOST), Collegiate’s affiliated Scholarship Granting Organization (SGO).

Not necessarily. A refund simply means you paid in more throughout the year than you actually owed, not that you had no tax liability at all. This credit is based on what you owed before that refund, so many people who receive refunds still qualify. It's worth checking with your tax professional to see how it applies to your specific return.

Yes, since this is a federal tax credit and because Tennessee has opted in, your contribution toward Collegiate through MOST is still eligible for a Federal Scholarship Tax Credit.

Tennessee has already opted into this incredible program, and information on this page reflects current federal guidance as of October 2026. The IRS continues to accept public comments on proposed regulations, and additional guidance may be issued before the program launches in 2027. Please consult your tax advisor regarding your individual situation.

We’ll continue to share the latest information as we learn more, and joining our list is the best way to stay informed.