New Federal Tax Credit Set to Expand Catholic Education in Arizona

PHOENIX, Oct. 21, 2026 /CourierPR/ -- Starting January 1, 2027, the new Education Freedom Tax Credit will allow individual taxpayers to receive a dollar-for-dollar tax credit against their federal tax liability for contributions to Scholarship Granting Organizations, also known as School Tuition Organizations, in Arizona. This federal program is poised to significantly impact the education landscape, particularly for families seeking quality Catholic education.

Catholic Education Arizona, the largest provider of scholarships for families attending Catholic schools in the Diocese of Phoenix, is celebrating 30 years of service. Since its inception in 1998, the organization has raised $408 million and awarded 165,000 scholarships, fundamentally altering the lives of countless students.

The Education Freedom Tax Credit works as follows: any U.S. citizen and resident who makes a qualified cash contribution to a participating Scholarship Granting Organization can claim the tax credit. For individuals, the annual tax credit value is $1,700, while married couples filing jointly can claim $3,400. Importantly, this federal tax credit is separate and unique from state tax credits.

If Arizona does not opt into the federal program, taxpayers can contribute to an eligible Scholarship Granting Organization in another state that has opted in. This flexibility ensures that the tax credit remains accessible to those seeking quality education, regardless of their state of residence.

The Education Freedom Tax Credit holds the potential to expand access to a quality Catholic education for underserved, disabled, and foster students in Arizona. Catholic Education Arizona is prepared to accept supporters' federal tax liability if Arizona opts into the program. The organization remains committed to keeping supporters informed as new information becomes available.

Catholic Education Arizona's mission is clear: to ensure every student has access to a quality education that opens doors for their future. As the organization celebrates its 30th anniversary, it continues to raise funds and award scholarships, changing lives one scholarship at a time.

To learn more about the federal scholarship tax credit and how to support Catholic Education Arizona, visit https://catholiceducationarizona.org/federal-scholarship-tax-credit/ or call (602) 671-2451.