Created by the bishops of Wisconsin, the Wisconsin Catholic Scholarship Granting Organization is a nonprofit, statewide organization to distribute scholarships for Catholic school students across the state.
How are the scholarships distributed?
These donations are routed to the school of the individual’s choice through a scholarship granting organization (SGO), like the Wisconsin Catholic Scholarship Granting Organization (WICSGO). Simply put, if an individual donates $1,700 to an SGO, a K-12 student will get a scholarship, and the donor receives $1,700 back on their federal taxes.
What is the Education Freedom Tax Credit?
The federal scholarship tax credit (also known as the Education Freedom Tax Credit or EFTC) allows individuals to receive a dollar-for-dollar tax credit back on their federal taxes for donating to a K-12 school of their choice. This nonrefundable tax credit is $1,700 for individuals or $3,400 for married couples filing jointly. The EFTC will go into effect on January 1, 2027, meaning that the tax credit would first be available for the 2027 tax year.
Who is eligible for a scholarship?
Under federal law, students in families below 300% of the area median income are eligible. Students in public, private, and charter schools can benefit. In Wisconsin, this means over 90% of all K-12 students in the state are eligible to receive a scholarship, if Wisconsin opts in.
Has Wisconsin opted in?
Federal law requires each state to opt in for SGOs to operate in their state. To participate, a governor must submit a list of approved SGOs to the U.S. Treasury Department. To date, Wisconsin has not opted in. If Wisconsin does not opt in, taxpayers can still donate and receive the federal tax credit, but their donations must go to SGOs in other states, benefitting students elsewhere instead of Wisconsin families.
This past session, Governor Evers vetoed legislation to opt in, but the next governor will still have an opportunity to say yes to these scholarships. This means that, if the next Governor of Wisconsin opts in, WICSGO could begin to distribute scholarships in 2028.
WICSGO will serve students in Catholic schools across Wisconsin.
Donors contribute funds and receive up to a $1,700 tax credit on their federal taxes (or $3,400 for joint filers). Donors can earmark funds to the Wisconsin Catholic school, system, or diocese of their choice. WICSGO will then distribute scholarships to benefit students in those schools.
About WICSGO
Yes, a student is allowed to receive funds from an SGO and one of the Wisconsin parental choice programs.
Under federal law, contributions cannot be earmarked for a specific student. However, if Wisconsin opts in, an individual can direct a contribution through WICSGO to the Wisconsin Catholic school, system, or diocese of their choice.
Having one statewide Catholic SGO for Catholic schools and using existing resources will minimize administrative costs–thus maximizing scholarships–while allowing schools and dioceses to retain as much local control as possible.
The majority of Catholics do not attend Catholic school. There will likely be various SGOs serving Catholic students in public and charter schools across Wisconsin. Families are encouraged to seek out SGOs working with their local school district or providing specific services that might best serve their students.
About the tax credit
Yes. Individuals can donate as much as they want to an SGO. However, the tax credit is capped at $1,700 for individuals and $3,400 for joint filers.
While the tax credit is a non-refundable credit, unused credits can be carried forward on federal taxes for up to five years.
No. All students under the income eligibility can benefit, regardless if they attend a public, private, or charter school. Under federal law, eligible qualified expenses include tuition, fees, tutoring, services, supplies, transportation, and more.
Visit fedscholarshiptaxcredit.org and read the EFTC fact sheet.
The federal scholarship tax credit is a transformative opportunity for Wisconsin students and we need our governor to opt in. Reach out to us to learn more at office@wisconsincatholic.org.
