The Federal Scholarship Tax Credit in New Hampshire
Last updated: October 2026. Federal regulations are proposed, not final.
How New Hampshire opted in
On January 29, 2026, Governor Kelly Ayotte announced that New Hampshire would participate in the Federal Scholarship Tax Credit. The announcement came through the NH Department of Education during National School Choice Week.
The legislature followed up by codifying implementation in HB 1774, which passed the Senate on May 14 and the House on May 21, 2026. Ayotte signed it on July 2, 2026. New Hampshire has completed its advance election and appears on the IRS's official list of participating states.
New Hampshire already has universal school choice
New Hampshire runs the Education Freedom Account (EFA) program, which became universal in June 2025. Any K-12 student in the state is eligible. The program is administered by Children's Scholarship Fund New Hampshire.
Demand has outpaced supply. The EFA hit its 12,500 student cap for the 2026-27 school year, with 943 students on a waitlist. The average grant was about $5,204 in 2024-25.
The state also has an Education Tax Credit program dating to 2012, where businesses can donate up to $600,000 and receive an 85% credit against business taxes, with a $5.1 million aggregate cap.
Why the federal program matters here
With the EFA capped and waitlisted, the federal scholarship program gives New Hampshire families a second option. Whether a student can hold both an EFA grant and a federal scholarship at the same time has not been clarified in final regulations. Federal rules prohibit duplicate payments for the same expense.
Income limits for New Hampshire families
Students qualify if household income is at or below 300% of the area median income for a family of four. Based on HUD FY2026 data:
| County | Max household income (300% of area median) |
|---|---|
| Merrimack | $385,800/year |
| Grafton | $336,000/year |
| Hillsborough | $365,100 - $442,800/year |
| Rockingham | $411,900 - $493,800/year |
| Strafford | ~$422,700/year |
Ranges reflect variation across metro areas within the county. Estimates based on HUD FY2026 income data. The IRS has not published official 2027 figures, and the income calculation method comes from proposed federal regulations, not final rules.
For New Hampshire families: how to use it
The program goes live January 1, 2027. Families apply directly to a scholarship organization, not to the state. Scholarships can cover tuition, tutoring, books, technology, and special-needs services. Public school families can use scholarships for tutoring and other support without leaving public school.
Watch the NH Department of Education's page and Children's Scholarship Fund New Hampshire for application announcements. No family application process has been published yet.
For New Hampshire donors: how to give
Starting January 1, 2027, donate cash to a scholarship organization on New Hampshire's IRS list and claim a dollar-for-dollar federal tax credit of up to $1,700 per person ($3,400 for married couples filing jointly, under proposed rules). The credit is nonrefundable. Unused amounts carry forward up to five years.
New Hampshire has no broad individual income tax, so there is no state-level interaction for most individual donors. Business donors should note that the federal credit is reduced by any state credit claimed on the same dollars.
You cannot direct your donation to your own child or any specific student. Only donations to organizations on New Hampshire's official IRS list qualify. That list is due by February 15, 2027.
Scholarship organizations in New Hampshire
Children's Scholarship Fund New Hampshire is the lead organization expected to serve as a federal SGO. It already administers the state's EFA program and has been expanding its leadership team specifically to launch a federal initiative.
No official SGO list has been published yet. Under federal rules, New Hampshire cannot pick and choose. Any organization that meets the federal requirements must be included.
Who runs this in New Hampshire
The NH Department of Education is the certifying agency under HB 1774. It builds and publishes the SGO list in coordination with the Department of Revenue Administration, submits the list to Treasury, and certifies each organization's authority. Contact: sgo@doe.nh.gov.
Key dates
| Date | Milestone |
|---|---|
| January 29, 2026 | New Hampshire opts in (Gov. Ayotte announcement) |
| July 2, 2026 | HB 1774 signed into law |
| October 1, 2026 | Treasury releases implementing regulations |
| January 1, 2027 | Program goes live; donations can begin |
| February 15, 2027 | New Hampshire's SGO list due to the IRS |
Sources
- IRS: Federal Scholarship Tax Credit, participating states list (accessed October 2026)
- NH Dept. of Education: New Hampshire opts into federal education tax credit program (accessed October 2026)
- Children's Scholarship Fund NH: federal scholarship tax credit (accessed October 2026)
- Ballotpedia: state participation in the federal K-12 education tax credit program (accessed October 2026)