How does the Education Freedom Tax Credit work?
Using the Education Freedom Tax Credit, taxpayers can receive a credit of up to $1,700 for contributions made to Scholarship Granting Organizations (SGOs) that would otherwise have been owed to the government in Federal income taxes. A tax credit reduces the amount of Federal income tax owed dollar-for-dollar (unlike a deduction, which decreases taxable income). The tax credit is available to any individual who is a citizen or resident of one of the States or the District of Columbia and makes qualified contribution(s) to SGO(s) during the taxable year.

Who can claim the Education Freedom Tax Credit?
Any individual who is a citizen or resident of one of the fifty States or the District of Columbia may claim the credit if the individual makes a charitable contribution to an SGO such as OSN for that taxable year. OSN will then use contributions to fund scholarships for eligible students.

Can I use my contribution to help students at a particular school?
You will be able to designate a portion of your contribution to benefit kids who choose the school that matters most to you (as the law allows). Taxpayers cannot designate a specific beneficiary with their contribution.

Which students qualify for scholarships through the Education Freedom Tax Credit?
An eligible student is one who can enroll in a public K-12 school and from a household with income not greater than 300% of the area’s median gross income qualify for a scholarship through the Education Freedom Tax Credit. Practically, that means most K-12 Nebraska students will be eligible to apply for an Education Freedom Scholarship.

When will scholarships be available?
Available scholarship funds will depend on how many tax credit contributions OSN receives from federal taxpayers. We are hopeful that OSN will be able to distribute funds to eligible Nebraska students the Fall of 2027.

Please feel free to contact us at info@nebraskaopportunity.org or call or text 402.205.7047 with any questions!