New · North Carolina opted in

Federal Scholarship Tax Credit (2027)

North Carolina joined the new federal scholarship tax credit in spring 2026 after lawmakers overrode Gov. Josh Stein's veto of House Bill 87. From 2027, donors can claim a dollar-for-dollar credit of up to $1,700 for gifts to scholarship granting organizations.

Last verified: October 2026

Did North Carolina opt into the federal school choice tax credit?

Yes. The House overrode Gov. Stein's veto of House Bill 87 in May 2026 and the Senate completed the override 30-19 in early June 2026, opting North Carolina into the federal program.

The credit is worth up to $1,700 per taxpayer per year for donations to qualifying scholarship granting organizations (SGOs), with unused credit carried forward up to five years. The state must submit a list of qualifying SGOs, and Treasury regulations are still pending.

Which Charlotte families could receive a federal tax credit scholarship?

Students who live in North Carolina, can attend a public school and come from a household under 300% of area median gross income are eligible under the federal law. SGOs must be 501(c)(3) charities that spend at least 90% of their income on scholarships.

No North Carolina SGO has announced award sizes yet. We will add application steps when the state's list is published.

Federal Scholarship Tax Credit (2027): what it is and isn't

The federal credit isIt is not
A credit for donors, funding scholarships through SGOsA payment from NCSEAA, or part of the Opportunity Scholarship
Means-tested by area median incomeOpen to every household regardless of income

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