After Colorado Acts, Baumgartner Urges Governor Ferguson to Opt Into New Tax Credit Program for Washington

WASHINGTON- Congressman Michael Baumgartner (WA-05) is calling on Governor Bob Ferguson to act swiftly and ensure Washington families can benefit from the new federal Tax Credit Program for Scholarship Granting Organizations (SGOs) created under the Working Families Tax Cuts and Jobs Act, landmark legislation passed by Republicans earlier this year.

"I applaud Governor Polis of Colorado for expanding his state's access to the new tax credit, a major win for families and school choice," said Congressman Baumgartner. "Now it's time for Governor Ferguson to do the same for Washington. Our students, families, and communities deserve the same access to flexible, high-quality education opportunities. Bob Ferguson needs to show that he is a protector of Washington students and not a puppet of Washington's teachers union."

Effective January 1, 2027, this new federal tax credit will allow taxpayers to claim a refundable credit of up to $1,700 for individual filers who contribute to approved SGOs. These organizations provide scholarships to students attending public, private, and secondary schools, expanding access and flexibility for families to choose the educational environment that best fits their children.

Scholarship funds may be used for tuition, fees, books, supplies, transportation, computers, special needs services, and other necessary educational expenses. Importantly, scholarships awarded through these SGOs will be tax-free income for recipients and their families - a direct investment in students and local schools.

To enable Washington residents to take further advantage of this opportunity with state groups, Governor Ferguson must submit a list of qualified non-profits eligible to be SGOs to the U.S. Secretary of the Treasury by January 1st. Several states are already taking action, including Colorado, whose Governor Jared Polis recently announced Colorado's intention to participate.