In what is expected to be a huge boost for private and religious schools across Alaska, Gov. Mike Dunleavy has signed on to have Alaska participate in the nation’s first-ever nationwide federal tax credit scholarship program – creating a dollar-for-dollar tax credit for Alaskans who donate to qualified scholarship-granting organizations (SGOs) – up to $1700 per year for individual contributions.
The K-12 program was originally introduced as the Educational Choice for Children Act (ECCA), then incorporated into President Trump’s Big Beautiful Bill Act by lawmakers. The goal is to expand school choice by incentivizing private donations to support educational expenses for families – all without directly appropriating government funds or creating traditional vouchers.
While the program can support some public school expenses, the primary focus and impact is on private, religious, homeschool and alternative options.
In order to off-set their tax liability, individuals can donate to certified nonprofit educational groups – making donations “cost-free” in terms of federal taxes.
The nonprofits that benefit from these donations – including private schools and other educational entities – can use the contributions to award scholarships to students who might not otherwise be able to access these educational alternatives.
Each state must opt in to the program, which takes effect in January, 2027. Once started, scholarships will be made available to eligible families making up to 300% of Alaska’s median gross income. This money can be put towards tuition and fees at private, charter, micro, and home schools, as well as towards dual-enrollment courses, educational therapies, tutors and supplies.
While the program can support some public school expenses, the primary focus and impact is on private, religious, homeschool and alternative options.
The program does not draw funding away from public schools, nor does it cost the state any money, but it does allow families to choose schools based on their child’s specific needs.
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“Opting into the ECCA creates another opportunity for families and students to reap the benefits of school choice – something more and more Alaskans are choosing,” Gov. Dunleavy stated on Jan. 26, “all while having no negative impact on the state budget – and allowing an equivalent tax deduction to those who choose to support education through their donations.”
Alaska Education Commissioner Deena Bishop praised the state’s participation in the program.
“This credit offers families another valuable tool to utilize in making the best education decision for their students,” she stated. “Doing everything we can to help our kids earn their success is our mission as educators, and this is another step in the right direction.”
2 Comments
This is actually a massively underreported story. Basically every married couple can now take $3400 that they WOULD have given to Uncle Sam and instead, give it to the religious school or private school of their choice, at no cost to them.
Still not clear if this is a credit, or a deduction? Does it reduce your tax payment by the donated amount, or just reduce your adjusted gross income?