Gov. Braun Opts-in to the Federal Scholarship Tax Credit (FSTC) Program!
On July 4, President Trump signed “The One Big Beautiful Bill” into law. One aspect of this bill includes a Federal Scholarship Tax Credit (FSTC) program that is modeled after successful state tax credit scholarship programs throughout our country, including Indiana. On January 22, Gov. Braun opted-in to the FSTC, making it possible for non-public schools in Indiana to participate in the program!
Program Details
▪ The bill allows for a 100% Federal Tax Credit for donations from individuals to Scholarship Granting Organizations, just like our Indiana Lutheran SGO.
▪ There is a $1,700 maximum Federal Tax Credit per taxpayer per year.
▪ Donors can designate their gift to be used for scholarships at the school of their choice.
▪ Businesses are not allowed to claim this credit.
▪ There is no sunset date on this legislation. It is permanent.
▪ There is no aggregate tax cap. The $1,700 maximum Federal Tax Credit is available to every taxpayer in our country.
▪ There is a five-year rollover on this tax credit.
▪ Scholarship recipients must come from families earning under 300% of the Median Local Income.
▪ The U.S. Treasury Department is working on determining the final rules that will govern the FSTC.
▪ The FSTC begins on January 1, 2027. FSTC donations cannot be given prior to this date.
▪ Please consider saving money now to include the FSTC in your 2027 giving plan!
The Lutheran SGO will be ready to manage the FSTC when it goes live on January 1, 2027!
For More Information, Contact: Scott Schumacher
Executive Director
scott@lutheransgo.org
812) 344-4724