North Dakota to Participate in Federal Tax Credit For Donations to Scholarship Granting Organizations

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(KNOX) – North Dakota will participate in a new federal program that offers a tax credit for certain donations to organizations that provide K-12 education scholarships and services, Gov. Kelly Armstrong said.

The tax credit applies to cash contributions to Scholarship Granting Organizations, or SGOs, which are nonprofits that award scholarships to help students pay for elementary and secondary education. Taxpayers may be able to claim the federal tax credit beginning Jan. 1, 2027.

“This program incentivizes charitable giving to support our state’s most precious resource – its students,” Armstrong said. “We look forward to implementing the program with additional federal guidance to empower school choice and support North Dakota students in their education.”

The program was established in the One Big Beautiful Bill Act passed by Congress and signed by President Trump last year. Before the tax credit can be claimed, the state must choose to participate in the program and submit a list of approved SGOs to the U.S. Treasury Department. To qualify, an SGO must be recognized as a 501(c)(3) public charity and may not be a private foundation. Eligible covered expenses include tuition, tutoring, special needs supports, technology costs and public education supplemental services for students enrolled in public or private schools. Income limits apply, and the maximum annual credit is $1,700 per taxpayer, per year.