Colorado Families to Benefit from Historic New Catholic School Scholarship Tax Credit

The federal law, supported by Governor Jared Polis, will help generate new scholarship opportunities for K-12 students across the state. 

Governor Jared Polis, the first Democratic governor to opt into the new federal tax credit scholarship law, joined Seeds of Hope and students from Holy Family High School in Broomfield and Sts. Peter and Paul Catholic STEM School in Wheat Ridge at a celebratory event at the Denver Museum of Nature and Science. (Photo courtesy of Seeds of Hope)

Students, parents, school leaders and school choice advocates gathered earlier this month with Colorado Governor Jared Polis at the Denver Museum of Nature and Science to celebrate a new federal tax credit scholarship law that will make Catholic education more affordable to more families. 

For many middle-income and working-class families, Catholic school options for their K-12 students are a growing challenge, even as tuition remains comparatively modest compared to other private schooling. 

That will soon change with a new federal income tax credit that will generate greater scholarship opportunities for families across the income spectrum, from low-income to middle-class families seeking a Catholic school opportunity for their children. 

“Every family should have the opportunity to pursue the educational path that best supports their child’s academic, spiritual and personal growth,” said Tricia Sullivan, executive director of Seeds of Hope, who spoke at this event. “We expect the number of children we can support with scholarship opportunities will increase significantly next year when this law goes into effect.” 

A local scholarship-granting organization (SGO) for 30 years, Seeds of Hope currently provides scholarships to 1,425 K-8 students, helping them attend Catholic schools in the Archdiocese of Denver. The new federal tax credit scholarship will be a game-changer for the thousands of students in these schools, making Catholic education across the archdiocese more accessible and affordable. 

 Two of these schools, Holy Family High School in Broomfield and Sts. Peter and Paul Catholic STEM School in Wheat Ridge, joined in the celebration alongside other schools and local leaders. 

The federal tax credit scholarship law, enacted last summer, offers an unprecedented 100 percent credit against individual income taxes. That means that when an individual donates up to $1,700 to a qualifying SGO that awards scholarships for students in K-12 education, their federal income tax liability will decrease by the amount donated. 

Effectively, donations cost the donor nothing, which means more taxpayers with even modest income and federal tax liability can become donors — and generate billions of dollars in annual scholarships nationwide, supporting more students and families.  

In January, Governor Polis made history as the first Democratic governor to opt into this federal law, expanding school choice for Colorado children and families. The decision came despite objections from public-school teachers’ unions and others opposed to private school choice, even though public-school students will likewise benefit from the policy. With the new law taking effect next January, Colorado families will soon have a new avenue for school choice. 

“Making school options and services more affordable and accessible to students should be a bipartisan issue,” said Peter Murphy, vice president of the Invest in Education Foundation, which sponsored the event at the Museum of Nature and Science. “More Democratic governors such as Kathy Hochul of New York are poised to join Governor Polis in taking full advantage of this federal scholarship law to help their state’s families.” 

For more information on this federal tax credit scholarship law, please visit seedsofhopedenver.org.