Montana Opts-in to Federal Tax Credit Scholarship Program, Expanding Education Freedom

Governor's Office

HELENA, Mont. - Ahead of School Choice Week, Governor Greg Gianforte today announced Montana opted-in to the new Federal Tax Credit Scholarship Program to provide Montanans a tax credit when they donate to nonprofits that provide scholarships to K-12 students to expand education freedom.

In July 2025, President Donald J. Trump signed into law the One Big Beautiful Bill Act. Among its provisions was a federally funded tax credit scholarship program for elementary and secondary education that will be effective beginning on January 1, 2027.

"Opting in to this program gives Montanans another incentive to support the success of the next generation," Gov. Gianforte said. "Thanks to President Trump, we're building on Montana's successful programs that provide children with more educational opportunities and we're expanding education freedom, giving more students and parents the ability to choose the learning path that works best for them."

Under the Federal Tax Credit Scholarship Program, Montanans can claim a nonrefundable federal tax credit of up to $1,700 for contributions to approved Scholarship Granting Organizations (SGOs) that fund K-12 scholarships.

Scholarship recipients can use the funds for tuition, books, room and board, tutoring, computers, and other approved education-related expenses that help families meet their children's needs.

Montana offers a Student Scholarship Organization Tax Credit to taxpayers who donate to an approved Student Scholarship Organization (SSO) to fund scholarships for eligible students attending qualified education providers. The credit equals the donation amount, up to $200,000 per taxpayer, and is available until the statewide annual cap is reached.

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