Ohio Scholarship Donation Tax Credit: $750 State Credit Plus the Federal Credit

How Ohio's scholarship tax credit works

Ohio created the credit in its 2021 budget bill (House Bill 110), and it now sits in Ohio Revised Code 5747.73. When you give cash to a scholarship granting organization (SGO) certified by the Ohio Attorney General, you can take a credit against your Ohio income tax equal to the gift, up to:

• $750 for single filers and most other taxpayers
• $1,500 for married couples filing jointly, with no more than $750 attributable to each spouse's donations

The credit is nonrefundable. It can bring your Ohio income tax to zero, but Ohio won't send the rest as a refund, and the statute doesn't provide a carryforward. If your Ohio tax is below $750, a smaller gift may be enough.

Ohio has no statewide cap in the statute and no preapproval step. That makes it one of the simplest state scholarship credits to use. CPA Practice Advisor reported in February 2026 that the number of certified SGOs had grown from 7 in 2021 to 74.

Who can claim it

• Individuals who owe Ohio income tax. Each spouse on a joint return can use up to $750.
• Owners of pass-through businesses. If an LLC, partnership or S corporation donates, its investors can claim their share of the credit. But the total for all investors is capped at $750 a year.
• Timing. You can give during the tax year, or up to the unextended due date of that year's Ohio return (usually April 15), and still claim it for that year. You can't claim the same gift twice.

To claim it, you must provide the Ohio Department of Taxation with a copy of the SGO's receipt showing the amount, in the form the Department requires.

What makes an SGO eligible in Ohio

The Ohio Attorney General certifies SGOs that:

1. are 501(c)(3) nonprofits, religious or not
2. mainly award academic scholarships for K–12 students
3. give priority to low-income students

The Attorney General keeps the list and sends it to the Department of Taxation, which posts it online. Ohio's rules are looser than the federal ones. Not every Ohio-certified SGO will meet the federal Section 25F requirements, such as the 90% spending rule, separate accounts, the 300%-of-area-median-income cap and the 10-student minimum. Only SGOs on Ohio's federal list earn the federal credit.

How the Ohio credit stacks with the federal $1,700 credit

Ohio opted in to the federal scholarship tax credit. The state is on the IRS list of 2027 advance elections dated September 14, 2026. Starting January 1, 2027, any Ohio taxpayer can also claim the federal credit of up to $1,700 per person for gifts to SGOs on the IRS SGO list.

Under Treasury's proposed rules (October 2, 2026), you first subtract any state credit for the same qualified contributions, then apply the $1,700 federal cap. The state credit doesn't come off the $1,700 itself. So you can give a bit more and keep both.

Worked example: single filer

Ana owes at least $750 in Ohio tax and $1,700 in federal tax. In 2027 she gives $2,450 to an SGO that is both Ohio-certified and on the federal list, and designates it all as a qualified contribution.

Her $2,450 gift costs her nothing after credits, assuming she has enough tax to use both.

Worked example: married couple

Ben and Chris file jointly. Each gives $2,450 from their own account in 2027: $4,900 total. They take $1,500 on their Ohio return and $3,400 federal ($1,700 each, under the proposed joint-filer rule). Total credits: $4,900.

Two timing traps

• The April look-back is Ohio-only. A gift made in March 2028 can count toward your 2027 Ohio credit, but the federal credit only counts gifts made during the calendar year. That March gift is a 2028 federal gift. The proposed rules treat a state credit as allowed in the year of the contribution, so it reduces your 2028 federal credit, not your 2027 one.
• Give personally for the federal credit. A pass-through entity's gift can generate a shared Ohio credit, but under the proposed rules it doesn't count toward any owner's federal credit.

If you give to an SGO certified only in Ohio, not on the federal list, you get the Ohio credit but no federal credit. That gift also won't reduce any federal credit you earn elsewhere.

How to give in Ohio, step by step

1. Pledge on Edulist so we can remind you when federal giving opens on January 1, 2027.
2. Pick an SGO that is certified by the Ohio Attorney General and, from 2027, on the IRS SGO list. Ask the SGO to confirm both.
3. Decide the amount. $2,450 per person maximizes both credits. $750 maximizes the Ohio credit alone.
4. Give cash and designate the gift as a federal qualified contribution.
5. Keep both documents: the receipt for Ohio and the federal acknowledgement with your unique donor number, due by January 31 of the next year.
6. File. Claim the Ohio credit on your Ohio return with the receipt. File Form 8525 with your federal return. See our guide to claiming the federal scholarship tax credit.

Choosing an Ohio SGO

Ohio has dozens of certified SGOs. Many are tied to a school network, a diocese or a region. Under federal rules, an SGO must serve students at more than one school and can't earmark gifts for a particular student. Ask how much of its income goes to scholarships and whether it will be on Ohio's 2027 federal list. Our checklist for choosing a scholarship fund walks through the questions. Families looking for aid can start with scholarships in Ohio.

For the full 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 SGO. This page reflects Ohio law and Treasury's proposed federal rules as of October 13, 2026. It is not tax advice. Ask your tax professional.