How the Education Freedom Tax Credit benefits students and donors

The Catholic schools in the Archdiocese of Anchorage-Juneau have long been a cornerstone of faith formation, academic excellence, and service to the community. Yet for many families, the cost of tuition can place a Catholic education beyond reach. The Education Freedom Tax Credit offers a powerful solution by creating scholarship opportunities for students while providing significant financial benefits to charitable donors.

The Education Freedom Tax Credit allows individual federal taxpayers to contribute up to $1,700 to an approved scholarship-granting organization that provides tuition assistance to eligible students attending both private and public schools. In return, donors receive up to a $1,700 federal tax credit that can reduce their tax liability, depending on their individual situations. For a married couple who both donate, the tax credit could be up to $3,400. 

Unlike a charitable deduction, which rewards donors with a small tax break, donors will get every penny of their donation back through this 100% tax credit. There is no better deal for supporting our nation’s Catholic schools. The State of Alaska has opted into the program to allow taxpayers and scholarship recipients to benefit from this great source of funding for Alaska schools. The Catholic schools in both the Archdiocese of Anchorage-Juneau and the Diocese of Fairbanks have partnered with the American Catholic Education Fund to bring this incredible scholarship program to families across both dioceses. 

Funds generated through the Education Freedom Tax Credit are used to provide scholarships that help families afford eligible expenses, the most common being tuition and fees, at Catholic schools. These scholarships can make the difference between a family remaining in a Catholic school or being forced to seek another educational option. 

For many households facing economic challenges, scholarship assistance opens doors that would otherwise remain closed. Families who earn less than 300% of the area’s median income will qualify to apply. This is a vast majority of our families in both dioceses! 

There is no cap on the dollar amount of the scholarship a student can receive but will be determined according to the funds raised by the generous donors. In subsequent years, priority will be given to those who have previously received the scholarship and their siblings. 

This means, for the first time, donors can redirect their dollars going to Washington to our Alaska Catholic schools, thus changing a child’s life by giving them the gift of a Catholic education, and it will not cost them a penny! 

Catholic schools contribute to the vitality of parishes, strengthen communities, and cultivate future leaders grounded in faith and values. When donors participate in The Education Freedom Tax Credit program, they help sustain a system of education that forms students spiritually, morally, and intellectually. Parents are empowered to select the educational setting that best reflects their values and aspirations for their children. The result is a partnership among donors, schools, and families that advances the mission of Catholic education for all, creating a legacy where the great commission of Jesus Christ to Go Make Disciples is realized.

Donations can begin as early as January 1, 2027. Donors can make one payment or divide it up over the year, whichever is convenient for them. Keep an eye out for information to come in the coming weeks with specific information allowing donors to take advantage of this fantastic opportunity to form the next generation of Catholics. For additional information, please contact the Archdiocese of Anchorage-Juneau Superintendent of Catholic Schools, Liz Loeffler at lloeffler@aoaj.org.