INDIANAPOLIS (WOWO) — Indiana Governor Mike Braun is encouraging organizations to apply for approval under a new federal education tax credit program that will allow taxpayers to receive up to $1,700 in federal tax credits for donations supporting K-12 scholarships beginning in 2027.

The program allows individuals to contribute to approved Scholarship Granting Organizations, or SGOs, which use private donations to provide educational scholarships to eligible students.

According to the governor’s office, scholarship funds can help cover tuition, fees, special education services, books, technology, tutoring and before- and after-school programs for students attending public or private schools.

Beginning January 1, 2027, eligible taxpayers will be able to claim a nonrefundable federal tax credit of up to $1,700 for qualifying contributions. Married couples filing jointly may qualify for up to $3,400. Unused credits can be carried forward for up to five years, and donors may also qualify for state tax credits.

Braun says the initiative is intended to expand educational options for Indiana families by reducing financial barriers to school-related expenses.

The U.S. Department of the Treasury and Internal Revenue Service issued proposed regulations for the program on October 1. Indiana has since launched an application process for organizations seeking approval to participate in 2027.

Indiana Secretary of Education Katie Jenner says the additional scholarship funding could help families access educational resources, including tutoring, technology and enrichment programs.

The Indiana Department of Education will publish a list of approved scholarship organizations by December 31 each year for the following calendar year.

Organizations interested in participating can find application information through the Indiana Department of Education.