MOScholars Tax Credit: Missouri's Scholarship Donation Credit and the Federal Credit

How the MOScholars tax credit works

In 2021, Missouri created MOScholars, the Missouri Empowerment Scholarship Accounts Program (HB 349 and SB 86). It's unusual: it's an education savings account program funded by tax-credited private donations instead of state appropriations. Donors give to certified educational assistance organizations (EAOs). EAOs use the money to fund scholarship accounts for students with IEPs and students from low-income households.

Eligible contributions are cash, checks drawn on U.S. banks, money orders, payroll deductions and electronic funds transfers. Stocks, bonds and other property don't qualify.

Who can claim it

According to the Treasurer, eligible donors file a Missouri income tax return, aren't anyone's dependent, and are one of:

• an individual subject to Missouri income tax
• an individual, firm, partner in a firm, corporation or S corporation shareholder doing business in Missouri and subject to Missouri income tax
• an express company paying Missouri's gross receipts tax (chapter 153)

You can't claim a credit for a gift made on behalf of your own dependent, and you can't name the student who receives the scholarship.

Reserving credits and timing

MOScholars works on reservations:

1. Reserve credits in the Treasurer's online Tax Credit Reservation System, naming the EAO.
2. Give to that EAO.
3. The EAO submits your documentation and sends you a Treasurer-approved receipt.
4. Claim the credit on your Missouri return with the receipt.

From the start of each calendar year until August 1, the cap is allocated first come, first served among EAOs. The Treasurer can then shift unused allocations to EAOs that have used theirs. If you want a credit for a particular year, reserve early.

The program's administration is changing. In June 2026 the Missouri Times reported that Odyssey will administer MOScholars. Legislators have also debated moving the program out of the Treasurer's office. Check the Treasurer's MOScholars pages for the current process before you give.

How MOScholars stacks with the federal $1,700 credit

Missouri opted in to the federal scholarship tax credit and is on the IRS list of 2027 advance elections. From January 1, 2027, Missouri taxpayers can also claim up to $1,700 per person in federal credit for gifts to SGOs on the IRS SGO list. Whether any MOScholars EAO also appears on Missouri's federal SGO list depends on the state's 2027 submission, due February 15, 2027. Federal SGOs must also meet different rules, including the 300%-of-area-median-income cap.

Under Treasury's proposed rules (October 2, 2026), a state credit allowed for your federal qualified contributions is subtracted before the $1,700 cap. MOScholars credits 100%, so claiming it on the same dollars leaves nothing federal:

Worked example

Marcus owes $6,000 in Missouri tax, so his MOScholars limit is $3,000 (50%). He also owes more than $1,700 in federal tax. In 2027 he:

• reserves $3,000 in MOScholars credits and gives $3,000 to a certified EAO, without designating it as a federal qualified contribution
• gives $1,700 to an SGO on the IRS list, designates it as a qualified contribution, and claims no Missouri credit for it

Result: $3,000 off his Missouri tax and $1,700 off his federal tax. The proposed ordering rule also says a state credit is applied first to undesignated gifts, which supports keeping the two gifts separate. The rules aren't final, so confirm your plan with a tax professional.

Business gifts

Corporations and pass-through owners can earn MOScholars credits. Under the proposed rules, gifts by partnerships and S corporations never count toward an owner's federal credit. Give personally for the federal piece.

How to give in Missouri, step by step

1. Pledge on Edulist so we can remind you when federal giving opens on January 1, 2027.
2. Reserve MOScholars credits with a certified EAO, early in the year.
3. Give to the EAO and keep the Treasurer-approved receipt.
4. For the federal credit, give separately to an SGO on the IRS SGO list and designate the gift as a qualified contribution. Married couples: $1,700 from each spouse.
5. Keep the federal acknowledgement with your unique donor number, due by January 31 of the next year.
6. File. Claim MOScholars on your Missouri return and file Form 8525 federally. See how to claim the federal scholarship tax credit.

Choosing a Missouri EAO

The Treasurer certifies a small number of EAOs, and each partners with a network of schools. Profiles on Edulist include Herzog Tomorrow Foundation (statewide), Activate Missouri (statewide, including public and homeschool students), Bright Futures Fund, Today and Tomorrow Educational Foundation, LCMS Missouri District and Agudath Israel of Missouri. Use our checklist for choosing a scholarship fund, and see Missouri scholarships for the family side. Businesses comparing states can read business tax credit scholarships.

For the federal rules, see the federal scholarship tax credit explained and the states opted in tracker.

Edulist doesn't take donations. You give directly to the EAO or SGO. This page reflects Missouri law, Treasurer guidance and Treasury's proposed federal rules as of October 13, 2026. It is not tax advice. Ask your tax professional.