Last year, Congress created the federal tax credit scholarship program as part of the “One Big Beautiful Bill.” Though the bill initially had language applying this program to all 50 states automatically, the Senate added language that requires states to individually opt-in to the program. On Wednesday, July 22, Kentucky opted in.
Secretary of State Michael Adams signed the IRS form enrolling Kentucky into the federal tax credit scholarship program. This was made possible through HB 1, sponsored by Representative Kimberly Moser and Rep. TJ Roberts, which legally requires the Kentucky Secretary of State to opt-in to the program.
This program allows Kentuckians to designate their tax dollars toward Scholarship Granting Organizations (SGO) that will fund the education of their choice—public, private, or home school. On top of that, Kentuckians who donate can claim a tax credit of up to $1,700.
Along with the IRS form, Adams signed a state regulation, establishing the process for registering and operating an SGO in Kentucky. Any organization that wants to become an SGO must file a “Declaration of Scholarship Granting Organization” with the Secretary of State’s office no later than November 30th of the year prior to starting operations. For example, in order to establish an SGO for the 2028-2029 school year, the organization must file by November 30, 2027. Along with its “Declaration of Scholarship Granting Organization,” the organization must have a letter from the IRS proving their 501(C)(3) status and pay a $15 filing fee.
“This President, Congress, General Assembly and Secretary of State have Kentucky students’ backs,” said Secretary of State Michael Adams. “All eligible Kentucky students – public, private and home-schooled – will soon have access to better and more affordable education.”
With no state school choice programs active, this tax credit program will greatly expand education freedom and opportunity in Kentucky. As Representative TJ Roberts, primary co-sponsor of HB 1, said, “We’re one step closer to unlocking true educational opportunity for Kentucky students in communities of all sizes across the Commonwealth. House Bill 1 encourages private investment in student success, creating new scholarships without drawing on state tax dollars, and empowers families to make the best choice for their child.”
Representative Kim Moser rightly encourages Kentuckians to take advantage of this program by saying, “Now the work shifts from Frankfort to our communities. This program will only succeed if Kentuckians step forward.” Since this program will run through private organizations, the success of HB 1 in Kentucky will be reliant on the people to succeed—donations to SGOs, private schools and homeschoolers accepting scholarships, and encouraging friends, family, and church communities to participate as well.
God has given us a great opportunity with this program. We must be faithful and take advantage of it. Stay tuned for more details about how supporters of The Family Foundation can participate in this new tax credit.
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The Family Foundation is a 501(c)(3) nonprofit organization that stands for Kentucky families and the biblical values that make them strong. Learn more at kentuckyfamily.org.