Federal Scholarship Tax Credit
New Possibilities
for every Washington student
A new federal program could direct up to $700 million per year to Washington students at no cost to the state. All we need is for the governor to opt in.
The Washington Student Success Coalition is committed to ensuring that all Washington students can benefit from the Federal Scholarship Tax Credit, especially those furthest from opportunity.
How It Works
The FSTC
Mechanism
The Federal Scholarship Tax Credit allows any taxpayer to redirect up to $1,700 annually of their federal tax liability to approved nonprofits that provide funds for approved educational expenses.
Here's the flow:
A Taxpayer Contributes
Any taxpayer redirects up to $1,700 of their federal tax liability to a qualified Scholarship Granting Organization (SGO).
Dollar-for-Dollar Credit
Contributions receive a dollar-for-dollar tax credit, making participation free for taxpayers.
SGOs Pool & Award
SGOs are nonprofits that pool donations and award funds to eligible K-12 families and students.
Families Access Services
Scholarships cover tutoring, supplemental educational expenses, school supplies, tuition, technology, transportation, and more.
Who Benefits Most
Major Impact for
Public Schools
Nine in ten Washington students attend public schools, which makes them the biggest potential beneficiaries of the Federal Scholarship Tax Credit, and the students the coalition is most focused on reaching.
School district foundations, tutoring organizations, after-school providers, Boys & Girls Clubs, YMCAs, and similar nonprofits could help families access educational supports that often fall outside traditional funding streams, reaching the students furthest from opportunity first.
The Washington Opportunity
Impact by
the Numbers
Potential Annual Benefit
for Washington students
Public Support
of Washingtonians in favor
States Opted In
already participating
Cost to Washington
fully federally funded
Washington Funding Based on Taxpayer Participation
$241M
per year
$482M
per year
$723M
per year
Keeping Washington Money in Washington
Governors must opt in for students in their states to benefit. If Washington chooses not to opt in, these funds will leave our state as donations to states that have opted in to FSTC.
Qualified Expenses
What Scholarships
Can Cover
$1,700
per taxpayer, per year — dollar-for-dollar tax credit
Questions & Answers
Frequently
Asked
Stay Informed
Get updates on FSTC in Washington.