Can I Use the New Federal Tax Credit to Pay for My Child’s Private School in Colorado?

Why is Colorado’s participation so hotly debated?

History is the biggest hurdle. Colorado voters have rejected school-voucher measures for years, and every past attempt to direct public support toward private education died at the ballot box. Many parents concluded that state-supported school choice simply was not possible here — so when they hear about “new funding,” their first instinct is skepticism: is it legally sound, and is it really available in a state that has long favored a single-system model?

What is the tension between state lawmakers and federal policy?

The friction comes from a real shift in where educational authority sits. The federal “One Big Beautiful Bill” created a $1,700 dollar-for-dollar tax credit for donations to scholarship organizations — but Colorado Democrats are advancing House Bill 1292 to layer strict state-level oversight on top of it. Critics warn the program is a “backdoor” to vouchers; supporters see it as a long-overdue return of power to parents after decades of stagnation.

How does school choice reflect our Biblical worldview?

Our team believes every child is a unique creation of God, and that parents carry the primary, God-given responsibility to steward their upbringing. We see these scholarships not as a “gift” from the state but as a restoration of the family’s right to seek an education that honors truth and parental conviction. As stewards called to seek the best for our children (Matthew 7:11), this program offers a path to align a child’s daily learning with their eternal destiny.

What are the specific facts about the new program?

According to the latest legislative updates and the federal joint fact sheet, the program rests on four pillars:

• The credit. Individual taxpayers receive a 100% federal tax credit — up to $1,700 — for donations to Scholarship Granting Organizations (SGOs).
• Broad eligibility. Scholarships are open to families earning up to 300% of area median income — roughly $400,000 for a family of four in some high-cost Colorado counties.
• Eligible expenses. Funds can cover private school tuition, uniforms, and room and board — plus tutoring and technology for both public and private students.
• Timeline. The opt-in is official, but the program launches for the 2027 tax year once the Treasury Department finalizes its regulations.

How can my family benefit from these changes?

To make the most of this shifting landscape, we recommend:

• Monitor the federal credit. Ask your tax professional how the new tax-credit scholarship rules could benefit your donations or your school’s funding model.
• Stay informed on state rules. Follow the Colorado Department of Education and U.S. Treasury updates — lawmakers are still debating which schools and organizations can participate.
• Get updates. Sign up for our email updates and we will alert you the moment applications open.

Why does this matter for your family’s future?

This shift is ultimately a move toward educational pluralism — the end of “one-size-fits-all” as the only option. For your family, it means the freedom to choose a school that supports your faith and your child’s specific learning needs, without being disqualified by your zip code. We believe it is a vital step in empowering parents to fulfill their role as the primary educators of their children.