Scholarship Granting Organizations in Michigan
Michigan is formally weighing participation but has not filed an advance election. Until it does, no SGO can be listed in Michigan and contributions do not qualify for the federal tax credit.
Where Michigan stands
Governor has declined to commit pending federal guidance, and the State Board of Education voted in May 2026 to urge non-participation. The next realistic decision point follows the November 2026 gubernatorial election; states may elect annually, so 2028 participation remains possible.
From the Section 25F State Opt-In Tracker, reviewed July 2026. Status can change during legislative sessions.
Get Michigan Section 25F updates
A short email the moment Michigan's opt-in status changes, plus formation deadlines as January 1, 2027 approaches.
What this means in Michigan
For donors
Not yet. The federal credit requires contributing to an SGO on the certified list of a state that has opted in, and Michigan has not filed an advance election.
For families & schools
Not yet — scholarships under the federal program require an SGO on a participating state's list, and Michigan has not opted in. Families can monitor the state tracker for developments.
For organizations forming an SGO
Formation groundwork can begin — 501(c)(3) structuring and governing documents are state-independent — but Michigan cannot list an SGO until it elects to participate. Many organizations prepare during this phase so they are ready if the state acts.
The federal rules are the same in every state
Section 25F’s structural requirements apply identically in Michigan and every other participating state.
Donor credit
$1,700 / yr
$3,400 married filing jointly — dollar-for-dollar federal credit
Student eligibility
≤ 300% AMI
Household income at or below 300% of area median gross income
Spending ratio
90 / 10
At least 90% of annual revenues to qualified scholarships
Distribution
10+ students
Awarded to ten or more students not all at one school
Finding an SGO in Michigan
No SGO is federally listed anywhere yet — the program takes effect January 1, 2027, and the procedure for a state to submit its list of qualifying SGOs is still pending IRS guidance. Because Michigan has not opted in, no SGO can be listed there. Our directory will list organizations by state as those listings are published.
Michigan SGO questions, answered
Has Michigan opted into the Education Freedom Tax Credit (Section 25F)?
Michigan is studying Education Freedom Tax Credit (Section 25F) opt-in. Governor has declined to commit pending federal guidance, and the State Board of Education voted in May 2026 to urge non-participation. The next realistic decision point follows the November 2026 gubernatorial election; states may elect annually, so 2028 participation remains possible.
Is the Education Freedom Tax Credit the same as the Federal Scholarship Tax Credit (FSTC)?
Yes. The Education Freedom Tax Credit (EFTC), the Federal Scholarship Tax Credit (FSTC), the Educational Choice for Children Act (ECCA), and Section 25F are four names for the same federal program — a dollar-for-dollar tax credit of up to $1,700 per year for donations to scholarship granting organizations, effective January 1, 2027.
Can Michigan donors claim the $1,700 federal scholarship tax credit?
Not yet. The federal credit requires contributing to an SGO on the certified list of a state that has opted in, and Michigan has not filed an advance election.
How do I find a Scholarship Granting Organization in Michigan?
None operate yet — Michigan has not opted in, so no SGO can be listed there. The SGO Guide directory at sgoguide.com/find will list organizations by state as the program rolls out.
How do I start an SGO in Michigan?
The federal structural work — 501(c)(3) status, SGO primary mission, governing documents, and compliance design — can be prepared now, but Michigan must elect to participate before any SGO can be listed there and donors can claim the credit.
Around Michigan
Of the 3 states bordering Michigan, 2 have opted in — Indiana and Ohio — while Wisconsin has not.
That distinction matters more here than it looks. A Michigan taxpayer can still give to an SGO listed in a participating state and claim the full $1,700 credit — nothing in Section 25F requires a donor to live in a participating state. What Michigan's status decides is whether any SGO can be listed in Michigan to fund Michigan students, and until it elects, none can. Why donors and students are governed by different rules.
Disclaimer: This page summarizes publicly tracked legislative status and general program rules for educational purposes. It is not legal or tax advice. Section 25F regulations are still evolving — consult qualified counsel before making decisions about SGO formation or donations.
Talk it through before you decide.
Tell us about your organization and we’ll set up a consultation on your formation path, your state, and the timeline. It costs nothing and there is nothing to sign — and if it’s useful, we’ll walk through the platform on the same call.
What happens next
We read your submission and respond within one business day
A working session, typically 45–60 minutes — your situation, not a sales pitch
Which of the three paths fits, what your state requires, and what the timeline is
You leave with a clear recommendation — including when the answer is to join an SGO rather than form one, or to wait