Support student success and parental choice in Nebraska. Through Nebraska’s early participation in the federal education tax credit program, you can safely redirect your tax liability to provide direct K-12 scholarship support.
State tax credit details
Nebraska is transitioning its educational tax programs. Forms and rules previously used for the state’s Opportunity Scholarships Act are no longer applicable. The Nebraska Department of Revenue is currently establishing brand-new procedures and forms to certify scholarship-granting organizations under the federal framework.
Applicable federal rules
Nebraska has officially made an advance election to participate under the federal Section 25F program for the calendar year 2027. This proactive step means that starting in January 2027, you can redirect up to $1,700 of your federal tax liability to receive a 100% dollar-for-dollar federal tax credit. Any future state tax credit claimed for the same redirect will reduce your federal credit amount to prevent a double benefit.
FAQs for families and donors
Which schools can participating students attend?
Scholarships can be used at public, private, or religious K-12 schools. Additionally, schools operated by a federally recognized Tribe or tribal organization qualify.
What are the exact compliance rules for SGOs?
SGOs must operate as certified 501(c)(3) public charities, distribute scholarships to at least 10 students who do not all attend the same school, and spend at least 90% of their receipts on student scholarships.
How do donors report their redirect on tax returns?
SGOs will provide each donor with a receipt featuring a unique donor number generated through an IRS-approved method. Taxpayers will report this number on their federal return, allowing the IRS to verify the credit without requiring you to share your Social Security Number with the SGO.
