Scholarship Granting Organizations in New York
New York is formally weighing participation but has not filed an advance election. Until it does, no SGO can be listed in New York and contributions do not qualify for the federal tax credit.
Where New York stands
Governor has stated intent to participate pending federal regulations. An intent statement is not an official election; no advance election has been filed.
From the Section 25F State Opt-In Tracker, reviewed July 2026. Status can change during legislative sessions.
Get New York Section 25F updates
A short email the moment New York's opt-in status changes, plus formation deadlines as January 1, 2027 approaches.
What this means in New York
For donors
Not yet. The federal credit requires contributing to an SGO on the certified list of a state that has opted in, and New York 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 New York 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 New York 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 New York 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 York
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 York has not opted in, no SGO can be listed there. Our directory will list organizations by state as those listings are published.
New York SGO questions, answered
Has New York opted into the Education Freedom Tax Credit (Section 25F)?
New York is studying Education Freedom Tax Credit (Section 25F) opt-in. Governor has stated intent to participate pending federal regulations. An intent statement is not an official election; no advance election has been filed.
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 York 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 New York has not filed an advance election.
How do I find a Scholarship Granting Organization in New York?
None operate yet — New York 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 York?
The federal structural work — 501(c)(3) status, SGO primary mission, governing documents, and compliance design — can be prepared now, but New York must elect to participate before any SGO can be listed there and donors can claim the credit.
Around New York
None of the states bordering New York have opted in either — Connecticut, Massachusetts, New Jersey, Pennsylvania and Vermont. The program reaches this part of the map later than most.
That distinction matters more here than it looks. A New York 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 York's status decides is whether any SGO can be listed in New York to fund New York 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