On Monday, Jan 26, Governor Dunleavy opted Alaska into the Federal K-12 Education Tax Credit Scholarship Program. The program was enacted by the President Trump’s One Big Beautiful Bill Act and allows individuals and families to claim a tax credit up to $1,700 a year when donating to a school of their choice. To qualify for the tax credit, taxpayers must donate to a Scholarship Granting Organization (SGO) which will then distribute the funds to the school that the taxpayer chooses.
The program requires governors to opt their state into the program for taxpayers in that state to participate.
Scholarships granted by the SGO will be given to eligible families making up to 300% of their area’s median gross income. Recipients may use the funds for qualified expenses, including:
- Tuition, fees, books, supplies, other equipment, academic tutoring, and special needs services for special needs beneficiaries that are incurred by the beneficiary in connection with enrollment or attendance as an elementary or secondary school student at a public, private, or religious school;
- Room and board, uniforms, transportation, and supplementary items and services (including extended day programs) if these expenses are required or provided by a public, private, or religious school in connection with enrollment or attendance; and
- Computer technology, equipment, or internet access and related services if used by the beneficiary and the beneficiary’s family during any of the years the beneficiary is in elementary or secondary school.
According to Governor Dunleavy: “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, 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.”
Commissioner Deena Bishop also commented on the program: “This credit offers families another valuable tool to utilize in making the best education decision for their students. 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.”