Federal Tax Credit Scholarship Program
What Is the Federal Tax Credit Scholarship Program?
A new federal tax-credit scholarship program is expected to begin in 2027 and could create an important new source of funding for Jewish day schools, including Abrams Hebrew Academy.
Under the proposed program, individuals may contribute up to $1,700 annually to approved Scholarship Granting Organizations (SGOs) and receive a federal tax credit equal to their contribution.
In simple terms:
Eligible donors could redirect a portion of their federal taxes to support student scholarships.
This program has the potential to significantly strengthen tuition assistance and affordability for families at Abrams Hebrew Academy.
Why This Matters to Abrams
Scholarship support is essential to ensuring that Jewish education remains accessible to families in our community.
If implemented in Pennsylvania, this program could:
- Increase scholarship funding for Abrams students
- Help families manage rising tuition costs
- Expand access to Jewish education
- Create a new and meaningful way for donors to support the school
While each individual contribution may be capped at $1,700, collectively these gifts could have a transformative impact on Jewish day schools nationwide.
Important to Know
At this time:
- Pennsylvania has not yet fully implemented the program
- Federal regulations and state participation details are still being finalized
- More guidance is expected in the coming months
Abrams Hebrew Academy is sharing information now so our community can better understand the opportunity and be prepared if and when the program becomes available in Pennsylvania.
What Is a Scholarship Granting Organization (SGO)?
SGOs are organizations that would receive contributions and distribute scholarship funds to eligible students and schools.
National Jewish education organizations are actively working to help Jewish day schools and communities prepare for the program and establish partnerships with qualified SGOs.
What Abrams Is Doing?
Abrams Hebrew Academy is:
- Monitoring federal and Pennsylvania developments
- Working with Jewish education partners and advocates
- Educating our donor community
- Preparing resources to help families and supporters understand the opportunity
- Building awareness now so our community is ready when details are finalized
Frequently Asked Questions
Is this available now?
Not yet. The program is expected to begin in 2027, and Pennsylvania participation details are still developing.
Who may be eligible?
Current guidance suggests individuals may be eligible to contribute up to $1,700 annually for a federal tax credit. Additional rules and qualifications are still being finalized.
Would this help Abrams families?
Potentially yes. Increased scholarship funding could help support tuition assistance and affordability for Abrams families.
Why is Abrams talking about this now?
Because preparation and education are important. If Pennsylvania participates, communities that are informed and organized will be best positioned to benefit.
Should I speak with my accountant?
Yes. Donors should always consult with their tax advisor regarding eligibility and tax implications.