ADAMS ENABLES KENTUCKY FAMILIES TO BENEFIT FROM FEDERAL EDUCATION TAX CREDIT

Frankfort, Ky. (July 22, 2026) – Today at a press conference, Secretary of State Michael Adams formally opted Kentucky into the 2025 One Big Beautiful Bill Act’s scholarship tax credit by signing documentation with the Internal Revenue Service. Adams also signed a state regulation to establish the procedures for submitting, reviewing, and processing filings for Scholarship Granting Organizations in Kentucky.

“This President, Congress, General Assembly and Secretary of State have Kentucky students’ backs,” said Adams. “All eligible Kentucky students – public, private and home-schooled – will soon have access to better and more affordable education.”

Kentucky families will soon be able to take advantage of the dollar-for-dollar federal tax credit of up to $1,700 per year for contributions to approved Scholarship Granting Organizations. Today’s actions will position both donors, and more importantly Kentucky students, to benefit from this federal program, which will soon cover a variety of educational costs for books, instruction materials, tutoring, and academic programs.

State Representative Kim Moser, the primary sponsor of House Bill 1, said she appreciated Secretary Adams’ work on the regulations.

“Now the work shifts from Frankfort to our communities,” Moser said. “This program will only succeed if Kentuckians step forward. I encourage community leaders, nonprofit organizations, business leaders, philanthropists, and individuals to consider establishing Scholarship Granting Organizations or supporting those that do. Our students in public and private schools will see the benefit.”

State Representative T.J. Roberts, the primary co-sponsor of Kentucky’s law authorizing Secretary Adams’ action, said he is excited to see House Bill 1 take effect.

“We’re one step closer to unlocking true educational opportunity for Kentucky students in communities of all sizes across the Commonwealth,” Roberts said. “House Bill 1 encourages private investment in student success, creating new scholarships without drawing on state tax dollars, and empowers families to make the best choice for their child.  I look forward to seeing Kentuckians embrace this opportunity and work together to open more doors for children across the Commonwealth.”

State Senate President Pro Tem David Givens also expressed his support for the program.

“I am grateful that federal law provides Kentucky with a voluntary opportunity to participate, and that the General Assembly acted quickly to ensure we didn’t leave money on the table. This federal tax credit allows charitable dollars that would otherwise go to Washington to stay here at home, and expand educational opportunities for Kentucky students,” Givens said.

“Just as importantly, House Bill 1 creates a new opportunity for public schools,” Givens continued. “I encourage local school districts to establish or partner with scholarship granting organizations to bring additional private resources into their communities. I also encourage everyone interested to support an SGO serving their local public schools and help invest directly in Kentucky’s students. Every individual taxpayer is allowed to donate up to $1,700 annually to the SGO of their choice and in turn receive a dollar-for-dollar federal tax credit for their donation.

“House Bill 1 ensures families, public schools, nonpublic schools and scholarship organizations can all benefit from this historic opportunity to leverage federal dollars that will strengthen education across the Commonwealth.”

With the regulation filed today, nonprofit entities and foreign nonprofit entities with confirmed tax-exempt 501(c)(3) public charity status may file the SGO declaration form in person or by mail, with an online filing option through the Secretary of State’s Fast Track website to be available shortly. Kentucky’s list of SGOs will be sent to the federal government by January 1, 2027, when SGOs can begin receiving qualifying donations. The federal tax credit will apply to qualifying contributions made during the 2027 tax year after Kentucky’s list of SGOs is submitted to the IRS, and taxpayers may claim and receive the credit when filing their 2027 federal income tax returns in 2028.