Scholarship Granting Organizations in New Mexico
New Mexico has declined to participate in the federal scholarship tax credit program — the governor has vetoed opt-in legislation or announced the state will not elect. Because states may make a fresh election each year, a future administration could still opt in. Until then, no SGO can be listed in New Mexico and scholarships cannot reach New Mexico students through the federal program.
Where New Mexico stands
Governor has stated the state will not participate.
From the Section 25F State Opt-In Tracker, reviewed July 2026. Status can change during legislative sessions.
Get New Mexico Section 25F updates
A short email the moment New Mexico's opt-in status changes, plus formation deadlines as January 1, 2027 approaches.
What this means in New Mexico
For donors
Not for New Mexico students — the state has declined to participate. But the credit itself does not depend on where the donor lives: New Mexico residents can contribute to an SGO listed in a participating state and claim the federal credit, with scholarships funding students who reside in that state. If New Mexico opts in under a future administration, in-state giving would become possible.
For families & schools
Not at this time — the federal program's scholarships can only reach students in states that have opted in, and New Mexico has declined to participate. States may revisit the decision annually.
For organizations forming an SGO
Listing is not possible in New Mexico while it stays out. Organizations committed to the model sometimes prepare formation documents in advance, organize state-conditional pledge campaigns that only process if New Mexico opts in later, or serve students through listings in participating states, subject to those states' rules.
The federal rules are the same in every state
Section 25F’s structural requirements apply identically in New Mexico 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 New Mexico
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 New Mexico has not opted in, no SGO can be listed there. Our directory will list organizations by state as those listings are published.
New Mexico SGO questions, answered
Has New Mexico opted into the Education Freedom Tax Credit (Section 25F)?
New Mexico has declined the Education Freedom Tax Credit (Section 25F) program. Governor has stated the state will not participate.
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 New Mexico donors claim the $1,700 federal scholarship tax credit?
Not for New Mexico students — the state has declined to participate. But the credit itself does not depend on where the donor lives: New Mexico residents can contribute to an SGO listed in a participating state and claim the federal credit, with scholarships funding students who reside in that state. If New Mexico opts in under a future administration, in-state giving would become possible.
How do I find a Scholarship Granting Organization in New Mexico?
None operate yet — New Mexico 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 New Mexico?
The federal structural work — 501(c)(3) status, SGO primary mission, governing documents, and compliance design — can be prepared now, but New Mexico must elect to participate before any SGO can be listed there and donors can claim the credit.
Around New Mexico
Of the 5 states bordering New Mexico, 4 have opted in — Colorado, Oklahoma, Texas and Utah — while Arizona has not.
That distinction matters more here than it looks. A New Mexico 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 New Mexico's status decides is whether any SGO can be listed in New Mexico to fund New Mexico 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