Bluum, an Idaho nonprofit that supports charter schools, announced Monday that it will apply to become a scholarship granting organization for a new federal tax credit program that allows taxpayers to fund K-12 scholarships.
Beginning next year, Idahoans can donate up to $1,700 to a scholarship granting organization (SGO) and receive an equal federal tax credit.
The incentive was created under the One Big Beautiful Bill Act, which President Donald Trump signed into law last year.
Bluum CEO Terry Ryan said the nonprofit hopes the program will expand options for Idaho families.
“Our goal is simple,” Ryan said in a news release. “This new federal law allows federal taxpayers to invest in Idaho children rather than sending those same dollars to Washington, D.C. We want every eligible family — whether their child attends a traditional public school, public charter school, or private school — to have access to educational opportunities that help Idaho students thrive.”
How it works:
Starting Jan. 1, Idaho taxpayers who donate up to $1,700 to a qualified SGO can receive the same amount as a credit toward their federal tax bill.
Unlike a tax deduction, which reduces taxable income, this tax credit provides a dollar-for-dollar reduction in a taxpayer’s federal tax bill.
Donors can direct the funds to students from a specific public school district, charter school or private school.
If approved as an SGO, Bluum would grant those funds to qualifying families for a wide range of uses, including tutoring, after-school and summer enrichment programs, technology and internet access, and private school tuition. See a list of qualifying uses here.
Scholarship amounts are not capped, so families can receive as much as the SGO is willing to provide.
Families with household incomes up to 300% of their area’s median income are eligible to apply for scholarships. That’s about 90% of Idaho families, according to Bluum.
The U.S. Treasury Department is expected to release the final program rules in September. Bluum plans to apply to be an SGO as soon as possible, Ryan said.
So far, 27 states are participating in the program, according to the IRS.
Gov. Brad Little opted into the program in February through an executive order.
“Idaho is proud to be the only state offering education freedom from kindergarten through career,” Little said in a news release. “My executive order strengthens our commitment to ensuring every parent has the opportunity to choose the education environment that best fits their child.”
In March, the Legislature codified Idaho’s participation through House Bill 731. The scholarships can be used in combination with Idaho’s own Parental Choice Tax Credit.
State Superintendent of Public Instruction Debbie Critchfield also signaled her support.
“Opting in on this opportunity will benefit every student and family in Idaho, no matter what their educational choices may be,” Critchfield said in a news release. “This is a chance to give Idahoans more – more support, more resources, and more options – without taking away from what we already have.”
Bluum has already administered several large-scale federal grants, including $55 million in Charter School Program funds. The nonprofit partnered with Odyssey, an online platform that will be used by both donors and scholarship recipients.
“Our vision is for Idaho to become a national model for implementing this opportunity,” Ryan said. “By working collaboratively across Idaho’s education community, we can ensure these federal tax dollars create meaningful learning opportunities for students throughout our state.”
Disclosure: Idaho Education News and Bluum are both supported by grants from the J.A. and Kathryn Albertson Family Foundation.
