Last verified: October 2026
Is Tennessee part of the federal scholarship tax credit?
Yes. Tennessee chose to join, according to TDOE's page on scholarship granting organizations, and the federal rules the program runs under came out October 1, 2026.
Organizations that want to be on the state's approved list can file a preliminary interest form now; TDOE says a formal application will follow later this fall.
Which Memphis families could get a tax-credit scholarship?
Any child who could attend public school qualifies if the household earns no more than three times the area median income; donors who fund those scholarships take up to $1,700 off their federal tax each year. In Memphis, MOST estimates the 300% line at about $240,000 for a family of four.
No Tennessee SGO has been approved yet, so no award amounts exist. For families whose school costs well above EFS or the ESA, it may become an extra layer from 2027.
| Federal Scholarship Tax Credit is | Federal Scholarship Tax Credit is not |
|---|---|
| A federal tax break for people who give, starting in 2027 | Not yet accepting Tennessee applications through an approved SGO |
| Available here since Tennessee said yes | Not run by TDOE as a state program |
| Meant for families earning up to three times the local median | Not limited to the MSCS zone |
| Handed out by nonprofits the state approves | Not a promised amount |