Education Freedom Tax Credit
Starting January 1, 2027, you can direct up to $1,700 of your federal income tax liability to support Nebraska kids and families seeking K-12 private school scholarships. Keep your tax dollars in Nebraska, and give hope to local kids… it’s a no-brainer!
How does the Education Freedom Tax Credit work?
Using the Education Freedom Tax Credit, taxpayers can receive a credit of up to $1,700 for
contributions made to Scholarship Granting Organizations (SGOs) that would otherwise have been
owed to the government in Federal income taxes. A tax credit reduces the amount of Federal income
tax owed dollar-for-dollar (unlike a deduction, which decreases taxable income). The tax credit is
available to any individual who is a citizen or resident of one of the States or the District of Columbia
and makes qualified contribution(s) to SGO(s) during the taxable year.
Who can claim the Education Freedom Tax Credit?
Any individual who is a citizen or resident of one of the fifty States or the District of Columbia may
claim the credit if the individual makes a charitable contribution to an SGO such as OSN for that
taxable year. OSN will then use contributions to fund scholarships for eligible students.
Can I use my contribution to help kids in a particular school?
You will be able to designate a portion of your contribution to benefit kids who choose the school that
matters most to you (as the law allows). Taxpayers cannot designate a specific beneficiary with their
contribution.
Which students qualify for scholarships through the Education Freedom Tax Credit?
Which students qualify for scholarships through the Education Freedom Tax Credit?
An eligible student is one who can enroll in a public K-12 school and from a household with
income not greater than 300% of the area’s median gross income qualify for a scholarship through
the Education Freedom Tax Credit. Practically, that means most K-12 Nebraska students will be
eligible to apply for an Education Freedom Scholarship.