Colorado Gov. Polis opts Colorado into the Federal Scholarship Tax Credit

Colorado Governor Jared Polis announced on December 5, 2025 that Colorado will opt into the federal Scholarship Tax Credit (FSTC) — the program known to Congress as the Educational Choice for Children Act (ECCA) and codified at IRC §25F. The announcement made Colorado one of the earliest states to formally signal participation ahead of the program's January 1, 2027 launch.

In a November 2025 interview with The Colorado Sun ahead of the announcement, Polis called participation “a no-brainer for the state to take advantage of the federal tax credit scholarship program,” describing it as “a real boom of investment in kids.” Asked about Colorado's participation, he added: “I would be crazy not to.” Polis framed donor contributions to Scholarship Granting Organizations (SGOs) as charitable contributions eligible for federal tax credits, arguing that opting in lets federal dollars stay in Colorado rather than flowing to scholarship organizations in other states.

Under §25F, Colorado families will be eligible to apply for scholarships through state-designated SGOs once the program goes live. Scholarships can support a range of K-12 educational expenses including tuition, tutoring, books and supplies, educational technology, after-school and summer programs, transportation, internet access, and targeted services for students with disabilities. Eligible students are those in households at or below 300% of the relevant Area Median Gross Income.

Donors anywhere in the country can claim the federal credit beginning January 1, 2027 — a non-refundable federal income tax credit of up to $1,700 per filer ($3,400 per joint return) for contributions to a qualifying SGO. As an opted-in state, Colorado will be eligible to receive donations through SGOs operating in the state, with scholarship funds flowing to Colorado students rather than students elsewhere.