A new federal tax credit is launching in January 2027 that could bring real money into public schools, and most districts don't even know it exists yet.
In this episode, host Nate McClennen talks with Antonio Parés, founder and principal of Walnut Hill Workshop, about the Education Freedom Tax Credit, also known as the Federal Tax Credit for Scholarships, or FTCS. The program lets any taxpayer redirect up to $1,700 to a scholarship-granting organization, or SGO, at zero net cost to themselves.
Antonio breaks down how the credit actually works for donors, how school districts can take advantage of it, and which fees and expenses qualify. He makes the case that public education, not just private schools, is in a strong position to benefit from this program, since districts already have the donor relationships, trust, and infrastructure that most new scholarship organizations are starting from scratch.
Nate and Antonio also dig into the still-unresolved 90/10 rule, which will determine how much of every donated dollar has to go directly to scholarships versus administrative costs, why shared SGO infrastructure across districts might make sense, and what concrete steps superintendents, school board members, and district leaders should be taking right now, well before Treasury's final guidance comes out in September.
Whether you're new to this topic or already tracking it closely, this conversation lays out what's known, what's still uncertain, and how to start preparing.
