Alaska Opens Applications for K-12 Scholarship Granting Organizations
Governor Mike Dunleavy today announced that the State of Alaska is now accepting applications from nonprofit organizations seeking approval as K–12 Scholarship Granting Organizations under the new federal Education Freedom Tax Credit.
President Donald J. Trump established the Education Freedom Tax Credit through the Working Families Tax Cuts Act. Beginning January 1, 2027, individual taxpayers may contribute to an approved K–12 Scholarship Granting Organization, or SGO, and receive a dollar-for-dollar federal income-tax credit of up to $1,700 each year.
The SGO then awards scholarships to eligible K–12 Alaska students. A recent analysis estimates that 95% of Alaska’s K–12 students will be eligible. Depending on the student and the SGO, those scholarships may help cover tuition, tutoring, books, classroom supplies, career and technical education expenses, services for students with disabilities, and other qualified K–12 education expenses. The program does not discriminate by educational model and may be used to support students in neighborhood public schools, charter schools, home schools, or private or religious schools.
By incentivizing voluntary charitable donations, the program will provide additional support for K–12 education outside of state and federal appropriations.
“This is a tremendous opportunity for Alaska’s K–12 students, no matter where they go to school or how they learn,” said Governor Mike Dunleavy. “This program will bring new resources into education and give students better access to tutoring, books, specialized services, tuition assistance, and other opportunities. It also gives taxpayers in Alaska and across the country a powerful way to invest directly in Alaska’s children—and receive a dollar-for-dollar federal income-tax credit for doing so. A win for students, families, schools, and taxpayers.”
“Alaska’s schools and families know where the needs are,” said Department of Education and Early Development Commissioner Deena Bishop. “This program gives people a new way to meet them. It can help a K–12 student catch up, move ahead, learn a trade, or receive support tailored to a disability. It can help a public school offer something that otherwise might remain beyond reach. It gives parents more tools to help their own children learn. We want Alaska organizations thinking now about the students they can serve and the partnerships they can build.”
K–12 Scholarship Granting Organizations may take different forms. Some will partner with particular schools or groups of schools, helping their students apply for scholarships and bringing new scholarship dollars into those school communities. Others may work with education providers, serve a particular region or educational need, or accept applications from eligible K–12 students across Alaska regardless of where they attend school or receive their education. Federal law requires each SGO to award scholarships to at least ten students who do not all attend the same school.
SGOs are nonprofit organizations and must devote at least 90% of their income to scholarships for eligible K–12 students. Although an individual taxpayer may claim a federal credit of up to $1,700, SGOs may pool contributions from many taxpayers. Individual scholarship awards may therefore be substantially greater than $1,700, depending on the SGO’s resources and scholarship program.
Governor Dunleavy has already elected for Alaska to participate in the federal program so that Alaska families may benefit from this opportunity. The next step is identifying the SGOs to which taxpayers in Alaska and across the country may make qualifying contributions to support Alaska K–12 students.
Nonprofit organizations seeking inclusion on Alaska’s list of approved K–12 Scholarship Granting Organizations may apply by submitting:
1. A letter of interest; and
2. A copy of the organization’s IRS 501(c)(3) determination letter.
The letter of interest must be signed by an authorized representative and attest that the organization meets, and will continue to meet, all applicable federal requirements for Scholarship Granting Organizations under Section 25F of the Internal Revenue Code and any implementing federal regulations or guidance.
Application materials should be emailed to SGO@alaska.gov.
Applications will be evaluated on a rolling basis. The State expects to approve its first group of K–12 SGOs by September 30, 2026, consistent with forthcoming regulations from the U.S. Department of the Treasury and the Internal Revenue Service.
Once approved, an SGO may rely on the State’s approval and begin organizing its K–12 scholarship program, building partnerships with Alaska schools and education providers, and preparing to raise qualifying contributions beginning January 1, 2027, subject to its continuing compliance with applicable federal requirements.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
