Agudath Israel of America’s New Jersey office is urging New Jersey residents to contact Governor Mikie Sherrill and ask her to opt in to the Federal Scholarship Tax Credit (FSTC), which is scheduled to take effect January 1, 2027.

Under the program, individual taxpayers can receive a federal tax credit of up to $1,700 for contributions to qualifying Scholarship Granting Organizations (SGOs), while married couples filing jointly can receive a credit of up to $3,400. The credit is tied to qualifying contributions to SGOs that provide scholarships for eligible K-12 educational expenses.

Participation by individual states is voluntary. The IRS says that 30 states have already made an advance election to participate in the program for 2027, but Governor Sherrill has not yet made a decison.

According to Agudath Israel, the program could potentially benefit approximately 96% of children in participating states, including students attending public, charter and private schools, depending on the eligibility requirements established under the program.

The IRS recently released proposed regulations providing additional details about the program. The federal credit is nonrefundable and can reduce a taxpayer’s federal tax liability, subject to the program’s requirements.

Under the program, taxpayers may contribute to qualifying SGOs, with the credit available for eligible contributions up to the federal limit. A state must first elect to participate and provide the IRS with a list of qualifying SGOs before contributions to SGOs in that state can qualify for the federal credit.

Agudath Israel, which played a key role in the drafting of the original legislation and advocating Congress for its passage.

Shlomo Schorr, who is the Agudah’s Legislative Director in New Jersey says there has been ongoing discussions with Governor Sherrill and members of her administration for months, as the governor considers whether New Jersey will participate.

“Now is the time to make your voice heard,” Agudath Israel said in an Action Alert urging New Jersey families to contact the governor.

The organization is asking residents to take a few minutes to fill out an online form requesting that New Jersey opt into the program.