New Scholarship Tax Credit: Maryland’s Big Decision

A new federal tax credit will let people give money to nonprofit scholarship groups and get back up to $1, 700 in taxes. The credit is aimed at helping kids in K‑12 with tuition, tutoring, special services, transport and tech. It starts in the 2027 tax year. But the credit only works if a state says it wants to join. Governors must tell the IRS and pick approved scholarship groups before Jan. 1, 2027. If a state stays out, families there can’t use the program. Maryland’s choice is up to Governor Wes Moore. If Maryland joins, donors could fund scholarships that help students stay in public schools or move to other settings. If it stays out, only families in the 20+ states that have already committed will benefit.The idea is different from new federal money. It lets taxpayers redirect what they would owe in taxes toward scholarships run by nonprofits, without changing state budgets. It is meant to boost opportunities for all students, not just those in private schools. Supporters say it will help kids who struggle with reading or focus and can’t afford extra help. Critics worry that attention might shift away from improving public schools themselves. The real question is simple: should Maryland let its families miss out on a federal chance that neighbors can use? The decision is not about politics, but about helping students get the support they need before 2027.