Running your state program alongside the federal one

The federal credit stands on its own. You don't have to run a state program first, and you can keep the state relationships you have. (Source: §25F(b)(1); §25F(c)(2)(A))

Donors cannot claim a federal and state tax credit on the same funds, so your $1,700 federal credit contribution needs to be claimed separately from any claimed state credit contribution. A qualified contribution is a cash donation to an SGO on a state's federal list. (Source: §25F(b)(2); §25F(c)(3))

Example. A married couple in Ohio donates $1,500 to CEN's Ohio state program and, separately, $1,700 to CEN SGO for the federal credit. They claim up to $1,500 on their Ohio return and plan on $1,700 on their federal return. They couldn't claim both credits on one donation. (Source: Ohio R.C. 5747.73(B); §25F(b))

Federal law doesn't stop a family from holding a state voucher or ESA and receiving a federal scholarship. The limit is paying for the same cost twice. Treasury wants states to put steps in place to stop duplicate awards, and a state may count the federal scholarship when it sizes its own award. (Source: Treasury guidance preview, June 2026)

Ask your state program how it treats outside scholarships, and tell families before they apply.

• Keep the money apart. State and federal donations have separate receipts, separate funds and separate reports. Track them separately in your books.
• Give donors two clear asks. One for the state credit, one for the federal. Put the two links side by side.
• Match awards to costs. Know which charge each award covers, so no two awards pay for the same thing.
• Line up the calendars. Ohio's credit counts donations made by the filing due date for the prior year. The federal credit counts donations made during the calendar year. (Source: Ohio R.C. 5747.73(B); §25F(a))
• Tell families once. Use one message that explains both.

EdChoice continues. CEN's Ohio state credit program continues, with a credit of up to $750 per person or $1,500 on a joint return. (Source: Ohio R.C. 5747.73(B)) Ohio opted in to the federal credit on February 4, 2026, so the federal credit adds a third layer.

Ohio certifies its state-credit SGOs through the Attorney General, and Ohio donors send a copy of their receipt to the tax commissioner to claim the state credit. CEN has run scholarships under Ohio's credit since 2021. (Source: Ohio R.C. 5747.73(B); Ohio R.C. 5747.73(C)) Ohio: two credits

Florida's and Georgia's tax credit scholarships, Pennsylvania's OSTC and other state programs continue. Each state sets its own rules for how its program works with outside scholarships. Check your state page.

• Asking for one donation and saying it earns both credits.
• Mixing state and federal donations in one fund.
• Letting two awards pay the same tuition charge.
• Assuming the federal scholarship cuts a voucher. That's up to your state.
• Using Ohio's filing-date deadline for the federal credit.