Tennessee Scholarship Granting Organizations
Federal tax credit program effective January 2027 · SGOs coming soon
What is the federal scholarship program?
Tennessee has opted in to the federal tax credit scholarship program created by the One Big Beautiful Bill Act (signed July 4, 2025). This is a new federal program — Tennessee does not have a separate state-level SGO tax credit.
Starting January 1, 2027, Scholarship Granting Organizations (SGOs) in Tennessee can receive tax-credit-eligible donations to fund K-12 scholarships for eligible students.
Am I eligible?
Your child may qualify if your family's household income is below 300% of the Area Median Income (AMI) for your area. Eligibility details:
- Grades K-12 are eligible
- Scholarships can cover tuition, tutoring, educational supplies, and transportation
- Each SGO may set additional criteria — apply directly with participating organizations
How to apply
- Find an SGO — look for Scholarship Granting Organizations listed on this page as they become available
- Apply directly through the SGO — each organization manages its own application process
- Select a qualifying school that participates in the program
- January 1, 2027: Federal program takes effect
- Varies by SGO: Application deadlines and award timelines will differ by organization
How the federal tax credit works
Starting in 2027, donations to qualifying SGOs in Tennessee are eligible for a federal tax credit:
- Up to $1,700 per individual filer
- Up to $3,400 for married filing jointly
- This is a dollar-for-dollar tax credit, not a deduction — it directly reduces your federal tax bill
- No reservation required — donate to any qualifying SGO and claim the credit on your federal return
How to donate
- Choose an SGO from the list on this page (as organizations become available)
- Make your donation directly to the SGO
- Claim the credit on your federal income tax return for the year of the donation
- January 1, 2027: Federal tax credit becomes available
- December 31: Annual deadline for donations to count toward that tax year's credit
Tennessee has opted in to the federal scholarship tax credit program. Since Tennessee has no state income tax on wages, the federal credit is the primary tax benefit for donors — up to $1,700 ($3,400 MFJ) starting January 1, 2027.
Resources for Tennessee
The Federal Tax Credit Scholarship Program: What You Need to Know
A clear explainer on the new federal tax credit for donations to Scholarship Granting Organizations — how it works, who qualifies, and what it means for families, donors, and SGOs starting in 2027.
What Is a Scholarship Granting Organization (SGO)?
A comprehensive guide to SGOs — what they are, how they work, and how they connect donors, families, and K-12 schools through tax-credit scholarship programs.
Resources for Tennessee
The Federal Tax Credit Scholarship Program: What You Need to Know
A clear explainer on the new federal tax credit for donations to Scholarship Granting Organizations — how it works, who qualifies, and what it means for families, donors, and SGOs starting in 2027.
What Is a Scholarship Granting Organization (SGO)?
A comprehensive guide to SGOs — what they are, how they work, and how they connect donors, families, and K-12 schools through tax-credit scholarship programs.
Guide last updated February 27, 2026
No SGOs listed in Tennessee yet
Tennessee has opted in to the federal scholarship tax credit program. Be among the first SGOs to list here and connect with families and donors.
Federal Program Details
- Program
- Federal Tax Credit Scholarship Program
- State status
- Opted In
- Federal tax credit
- $1,700 / $3,400 MFJ
- Effective date
- January 1, 2027
- Student income limit
- 300% of Area Median Income
- Eligible grades
- K-12
- Enacted by
- One Big Beautiful Bill Act (July 4, 2025)
Federal tax credit in Tennessee
Donate to a qualifying SGO in Tennessee and claim a federal tax credit of up to $1,700 ($3,400 MFJ) starting January 2027.
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