Why New York’s Federal Tax Credit Won’t Impact Public School Funding

In an unexpected move, Governor Kathy Hochul announced in May that New York State would participate in the federal tax credit program offered by the One Big Beautiful Bill. This initiative is designed to benefit Scholarship Granting Organizations (SGOs). It allows taxpayers to claim a credit of up to $1,700 on their donations to these organizations. SGOs then use these funds to offer scholarships, tutoring, or other educational support to families whose incomes are up to 300 percent of their area’s median gross income.

This program ensures that the state incurs no costs, making it an attractive proposition for taxpayers who want to support education without impacting the state budget.