Education Freedom Tax Credit
Coming 2027: New Federal Tax Credit that could directly support Blessed Sacrament!
Starting in 2027, taxpayers have a unique opportunity to support Catholic education using dollars they would otherwise pay in federal taxes. Through the Education Freedom Tax Credit, individuals can redirect up to $1,700 and married couples up to $3,400 toward scholarships that help K-12 students access a Catholic education.
Through our partnership with Ace Scholarships, donors can designate their contribution to benefit students at Blessed Sacrament Catholic School, helping make Catholic education more affordable while strengthening the long-term sustainability of our school community.
The program officially opens on January 1, 2027. You are welcome to schedule and commit to a future recurring contribution now. However, the “process payment on” date cannot be any earlier than January 1, 2027.
*You can receive a federal tax credit of up to $1,700 per individual, or $3,400 per married couple filing jointly, for contributions made to Scholarship Granting Organizations (SGOs)
A tax credit reduces the amount of Federal income tax owed dollar-for-dollar (unlike a deduction, which decreases the taxable income).
Big impact on the school, not your wallet.
Your gift will support scholarships for eligible students attending Blessed Sacrament, helping make Catholic education more accessible for families.
Taxpayers outside of Colorado can participate!
Eligible taxpayers may participate regardless of where they live, provided the qualifying contribution is made to a Scholarship Granting Organization in a state that has opted into the federal program (Colorado has opted into the program beginning in 2027!).
Please help spread the word about this new tax program! Family, friends and any other taxpayer from other states can all donate to the SGO and may be eligible for the tax credit.
100 supporters x $1,700 = $170,000 for student scholarships!
Just 100 supporters making a qualifying $1,700 contribution could generate $170,000 in scholarship support for eligible Blessed Sacrament students!
FAQ
The Education Freedom Tax Credit helps our school by increasing access to scholarships for families, making it easier for students to attend and remain enrolled in our programs.
You are free to donate as much or as little as your budget allows - every contribution helps support our students! But, keep in mind the maximum tax credit you can claim will be limited to $1,700 per taxpayer ($3,400 for married filing joint when each spouse makes a qualifying donation). Note: Contributors cannot claim both the credit and a charitable deduction for the same donation.
Yes. The federal credit applies regardless of which state you live in. Colorado is opted into the program for the 2027 tax year, which means students attending school in the state of Colorado can apply for an EFTC scholarship.
The earned income limit for a family of 5 in Denver County to qualify for an EFTC scholarship in 2027 is $466,800. In comparison, the max income for a family of 5 to qualify for a scholarship for the 2026/2027 school year through Ace was $135,380. This means that more families can qualify for scholarships in 2027!
*Considerations to note:
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Direct gifts to Blessed Sacrament do not qualify for the federal tax credit. Gifts must be made to the SGO, who will provide the tax documents needed to make your claim.
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Donors may not designate gifts for a specific student or family.
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Colorado has opted into the federal program, but implementation details and guidance are still developing ahead of the anticipated 2027 rollout.
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Blessed Sacrament will continue updating this page as additional federal, state, and SGO guidance becomes available!
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The federal tax credit is limited to $1,700 per taxpayer or $3,400 per married couple filing jointly per year.
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Contributors cannot claim both the Education Freedom Tax Credit and a federal charitable deduction for the same contribution.
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The EFTC can reduce federal income tax liability dollar-for-dollar, up to the amount of the available credit. IRS Form 1040, Line 16 (‘Tax’) can be a useful starting point for reviewing federal income tax liability. If a taxpayer cannot use the full credit in the year of the contribution, unused credit may be carried forward for up to five years. Donors should consult their tax professional regarding their individual tax situation.
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This page is intended for general informational purposes only. Donors should consult their tax professional regarding their individual tax situation.
Thank You to Our Corporate Sponsors!
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