Governor Armstrong announces North Dakota’s participation in new federal tax credit program to support K-12 education scholarships
Bismarck, North Dakota – North Dakota is preparing to join a new federal education initiative that state leaders say could open the door to more private funding for students and families. Gov. Kelly Armstrong announced today that the state will participate in a newly created federal tax credit program designed to encourage donations that support K–12 education scholarships and related services.
The program allows taxpayers to receive a federal tax credit for certain cash donations made to Scholarship Granting Organizations, commonly known as SGOs. These nonprofit groups provide scholarships and educational support to help families cover the cost of elementary and secondary education. While the announcement marks an important step forward, taxpayers will not be able to claim the credit until Jan. 1, 2027.
“This program incentivizes charitable giving to support our state’s most precious resource – its students,” Armstrong said. “We look forward to implementing the program with additional federal guidance to empower school choice and support North Dakota students in their education.”
How the Education Tax Credit Will Work
The program was created under the One Big Beautiful Bill Act, which was passed by Congress and signed into law by President Trump last year. Before the tax credit becomes available, North Dakota must formally opt into the program and submit a list of approved Scholarship Granting Organizations to the U.S. Treasury Department.
To qualify, an SGO must be recognized as a 501(c)(3) public charity and cannot operate as a private foundation. These organizations will be responsible for awarding scholarships and distributing funds to support students across the state.
The tax credit applies only to cash contributions and is subject to income limits. The maximum credit available is $1,700 per taxpayer per year. The credit is nonrefundable, meaning it can lower a taxpayer’s federal income tax bill but will not result in a refund if the credit exceeds the amount owed.
Funds raised through the program may be used for a wide range of education-related expenses. Eligible costs include tuition, tutoring services, special needs support, technology expenses, and supplemental services tied to public education. The program applies to students enrolled in both public and private schools, broadening its potential reach.
State Education Leaders Welcome the Opportunity
State Superintendent of Public Instruction Levi Bachmeier praised the move and urged families to learn more about how the tax credit could benefit students across North Dakota.
“Thousands of students attending public and private schools will benefit from the funds enabled by this tax credit,” Bachmeier said. “I appreciate Governor Armstrong’s leadership to unleash more resources to support our students as North Dakota works to lead the nation with America’s best schools.”
State officials emphasized that additional guidance from the U.S. Treasury Department is still pending. Once that guidance is released, North Dakota will share more details, including a full list of approved Scholarship Granting Organizations eligible to receive donations under the program.
For now, leaders say the decision to participate positions North Dakota to take advantage of new federal resources aimed at expanding educational opportunity. As implementation moves forward, families, donors, and schools are being encouraged to stay informed as the state works through the final steps needed to launch the program.
