- Maryland has not decided whether to join the Education Freedom Tax Credit; its deadline is December thirty-first, twenty twenty-six.
- Individuals may claim up to seventeen hundred dollars for qualifying donations; joint filers may claim up to thirty-four hundred dollars.
- Maryland residents could donate across state lines, but those gifts would support organizations in participating states.
Maryland has not decided whether to join the new federal Education Freedom Tax Credit, as Gov. Wes Moore’s administration reviews regulations issued by the Treasury and IRS on October 1, 2026. The state’s choice will determine whether Maryland-based organizations can offer scholarships under the program.
The decision remains pending. As of October 13, 2026, 30 states had opted in, while Maryland was not listed among them.
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The federal program is scheduled to begin on January 1, 2027. Its credits reward qualifying donations to approved organizations, rather than giving families a direct federal payment for tuition.
Maryland residents could still participate in one way if the state declines. Federal law allows donations to eligible organizations in another participating state, regardless of where the donor lives.
Donations would fund scholarships, with a federal credit for contributors
Under the program, an individual could receive a nonrefundable federal income-tax credit of up to $1,700 for a qualifying cash donation to an approved scholarship-granting organization. Married couples filing jointly could claim up to $3,400.
The donation goes to an organization that awards scholarships to eligible K–12 students. Those organizations generally must devote at least 90% of their income to scholarships. The credit is tied to the donor’s contribution, while a student’s eligibility and the expenses covered are governed by separate program rules.
A student’s household income must be no more than 300% of area median gross income. The student also must be eligible to enroll in a public elementary or secondary school.
Scholarships could cover private-school tuition, but the permitted uses extend beyond tuition. They include academic tutoring, special-needs services, books, supplies, computers and other educational equipment.
Maryland residents could give across state lines if the state opts out
A Maryland resident who gives to an eligible organization in a participating state could claim the federal credit even if Maryland does not join. The donation, however, would support that organization’s scholarships, not Maryland-based organizations or students through a local program.
That creates two separate questions for the state and its residents. Maryland can decide whether to make its own scholarship organizations eligible under the federal program; residents’ ability to donate elsewhere does not depend on that state decision.
The state’s review is focused on how the federal rules would work in Maryland. Moore’s administration is considering whether participation would amount to a voucher-style program, how public-school students might benefit and how scholarship organizations would be overseen.
Moore’s review centers on vouchers, public-school benefits and oversight
Moore has opposed private-school vouchers and been skeptical of Maryland’s existing BOOST program. Supporters and critics frame the federal credit differently, with the central dispute over where scholarship support would go and whether it would reach students in public schools.
Private and religious-school leaders supporting participation say the credit could bring federal resources into Maryland without diverting money from the state’s public-school budget. They argue scholarship funds could pay for tutoring, technology, transportation and special-education services for public-school students, as well as private-school tuition.
Teachers-union advocates opposing the program characterize it as an expansion of private-school vouchers. They warn that it could shift educational support toward private and religious schools.
The debate is unfolding as Maryland faces a state budget shortfall. Supporters see a chance to attract federally supported educational resources without a direct state appropriation; the governor’s review is weighing that possibility alongside questions about program design and oversight.
The state must decide before the program’s launch
Maryland must opt in by December 31, 2026, for Maryland-based scholarship organizations and families to participate when the federal program begins on January 1, 2027. The deadline leaves the administration’s review to resolve before the start date.
