Ohio joins

Ohio opted in to the federal credit on February 4, 2026, when Governor Mike DeWine made the state's advance election with the IRS. That's the first of two steps. Ohio still has to send Treasury its list of qualifying scholarship granting organizations for 2027. (Source: Rev. Proc. 2026-6)

Ohio matters to us. It's where CEN SGO is based, and we already run a scholarship program under Ohio's state credit.

Two credits in Ohio

Ohio already has its own credit for cash donations to a scholarship granting organization certified by the Ohio Attorney General. It's up to $750 for an individual or $1,500 for a couple filing jointly, against Ohio income tax. (Source: Ohio R.C. 5747.73(B))

The federal credit is up to $1,700 against federal income tax, for cash donations made from January 1, 2027. (Source: §25F(a), (b)(1))

Why two donations

Donors cannot claim a federal and state tax credit on the same funds. So your $1,700 federal credit donation needs to be separate from any donation you claim the Ohio credit for. (Source: §25F(b)(2))

That means two separate donations, one for each credit. The law also requires an organization to keep federal-credit donations in a separate account. Ohio: two credits walks through both. (Source: §25F(c)(5)(B))

An example

A married couple donates $1,500 to CEN's Ohio program and claims $1,500 on their Ohio return. They donate $1,700 to CEN's federal program and claim $1,700 on their federal return. That's two acknowledgments and two returns, and $3,200 for scholarships. We've used one $1,700 federal credit for the couple, since Treasury hasn't said whether a joint return gets one or two.

The timing is different

Ohio lets you donate up to the unextended filing deadline the next spring and count it for the year before. The federal credit only counts donations made during the tax year. A donation in April 2028 can't go on your 2027 federal return. (Source: Ohio R.C. 5747.73(B), §25F(a))

What it means for Ohio families

Ohio students can get federal scholarships once Ohio lists CEN and their school's application window opens. The income test is federal: household income at or below 300% of the area median for the year before you apply. Ohio families can keep using Ohio's own programs where they qualify. (Source: §25F(c)(2))

What it means for Ohio schools

Many Ohio Christian schools already know CEN through the state program. The federal program adds a second pool of scholarships with its own rules. Donations are kept in a separate account, family income is checked against the federal limit, and students who had a scholarship the year before come first, then their brothers and sisters. (Source: §25F(c)(5)(B), (d)(1))

What happens next

Ohio still has to send Treasury its list of organizations, and Treasury will say how and when. Donations for the federal credit start on January 1, 2027. December 31, 2027 is the last day to donate for the 2027 federal return. The Ohio credit keeps its own deadline, the unextended filing date the next spring.