Created in the 2025 federal reconciliation law, the program lets individual taxpayers redirect up to $1,700 of federal tax to a scholarship granting organization (SGO) and take a full credit. Contributions above $1,700 can carry forward up to five years.
Eligibility is set at 300% of area median income, which covers a large majority of Houston-area households. Unlike TEFA, there is no fixed state budget cap — the pool grows with donations.
For Houston families this is the natural second layer: TEFA covers $10,474, and an SGO scholarship can cover tuition above that, or help a waitlisted family until the next TEFA cycle. We will publish the list of SGOs serving Houston as they are certified.
How to stack it
Federal Scholarship Tax Credit (2027) can usually be combined with school-based aid and at least one other source on this site. Complete the funding check and an advisor will map the full stack for your child.