On Monday, Oct. 19, Gov. Jared Polis announced the application is open for qualifying nonprofit scholarship granting organizations (SGOs) to join Colorado’s eligibility list under the new Federal Scholarship Tax Credit.
The Federal Scholarship Tax Credit is a nonrefundable tax credit that allows Americans to donate up to $1,700 of their federal tax liability to eligible nonprofit SGOs in participating states that help students access educational opportunities and support learning through efforts like after-school learning, tutoring, transportation and more.
“Colorado donors value our future, and I’m excited that donors will now be able to give more to support the best education possible for kids in our state. As the top state in education, we know that investing in our students sets them up for success, prepares our future workforce for success and is an investment into our economy. I encourage all eligible nonprofit Scholarship Granting Organizations to apply so we can build on our success and keep Colorado as No. 1 in education,” said Polis.
The Colorado Department of Revenue has updated its form for compiling Colorado’s list of eligible SGOs, which is now open and available at: tax.colorado.gov/scholarship-granting-organizations.
SGOs that would like to join Colorado’s eligibility list have until Nov. 30 to apply. Applications will be reviewed and approved by the Colorado Department of Revenue on a rolling basis.
In January, Colorado submitted its Advance Election to Participate form to the IRS to officially signal Colorado’s intent to participate. Colorado plans to submit its list of approved qualifying SGOs to the Treasury by Dec. 31, ahead of the credit going into effect on Jan. 1, 2027.
In October, Polis celebrated the U.S. Treasury’s rules that public school students were confirmed to qualify. Colorado is leading the way nationally to ensure all students, including those at public schools, will be able to benefit from the opportunities from this tax credit.
New SGOs like the Colorado Public Schools Foundation, Denver Public Schools Foundation Opportunity Fund and Learn Everywhere Fund will provide ample opportunity for taxpayers to donate funds that will benefit public school students across the state.
If your organization’s 501(c)(3) status is pending certification from the IRS, you are still eligible to apply to Colorado’s SGOs eligibility list.
More information is available at https://tax.colorado.gov/scholarship-granting-organizations.
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