Congressman Michael Baumgartner (WA-05) has urged Governor Bob Ferguson to take steps that would allow Washington families to benefit from the new federal Tax Credit Program for Scholarship Granting Organizations (SGOs). The program was created as part of the Working Families Tax Cuts and Jobs Act, legislation passed by Republicans earlier this year.
Baumgartner referenced Colorado’s recent move to join the tax credit initiative. “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.”
Starting January 1, 2027, the federal tax credit will permit taxpayers to claim up to $1,700 in refundable credits if they contribute to approved SGOs. These organizations offer scholarships that help students attend public or private schools at both primary and secondary levels. The intent is to provide more options for families when selecting educational environments.
Scholarships awarded through these SGOs can be used for expenses such as tuition, books, supplies, transportation, computers, special needs services, and other related costs. Additionally, recipients will not have to pay taxes on scholarship income.
For Washington residents to benefit fully from this opportunity with local organizations, Governor Ferguson must submit a list of qualified nonprofits eligible as SGOs to the U.S. Secretary of the Treasury by January 1st. Colorado has already moved forward on this requirement after its governor announced participation in the program.