Governor Greg Abbott has announced that Texas intends to opt in to the Federal Tax Credit Scholarship program.
Through the One Big Beautiful Bill, a dollar-for-dollar federal tax credit of up to $1,700 a year for individual contributions to a qualified scholarship granting organization (SGO) was created. Credits for donations in excess of $1,700 can be carried forward for up to five years. Students from families at or below 300% of local median income are eligible and will apply to qualifying SGOs for scholarships which may be used for tuition or other educational expenses at a public or private school such as tutoring, transportation or special needs services. States must opt in to in the program, which starts in January 2027.
Similarly, Texas recently created the Texas Education Freedom Accounts (TEFA) program. The TEFA program, established in May through Senate Bill 2, will allow eligible students to direct funding toward their choice of preapproved educational providers and services such as private school tuition, instructional materials, and educational therapies. The Texas Comptroller of Public Accounts adopted rules for TEFA were published in the December 12th Texas Register. The comptroller received approximately 300 comments regarding the adoption for the proposed rules and can be found here.
The Governor’s full press release can be found here.
See below for more HillCo Partners’ content pertaining to the TEFA Program:
