Educational Freedom Tax Credit
3,000 open seats.
Our Catholic schools have room for 3,000 students. Families want the faith-filled education we offer, but tuition can stand between a child and an open classroom door. Beginning in 2027, a new federal tax credit could turn your tax dollars into scholarships for students in our schools. You can help at no cost to you!
Give up to $1,700 per individual or $3,400 for married couples filing jointly to an approved scholarship-granting organization; eligible taxpayers receive a dollar-for-dollar federal tax credit.
Two paths, one shared purpose
For Families
The school you want for your child may be closer than you think. Scholarships can help eligible families enter a Catholic school or continue receiving the education they love.
For Supporters
You do not need a child in Catholic school to help one thrive there. A qualifying 2027 contribution through ACE Scholarships could support our students and reduce your federal income tax bill dollar-for-dollar, up to $1,700 per individual or $3,400 for married couples filing jointly. The new Education Freedom Tax Credit redirects your federal tax dollars to education, allowing Colorado families to have freedom of choice in education.
A scholarship opens more than a classroom door.
Catholic schools in the Archdiocese of Denver unite the mission of the Church and the family. They are sanctuaries of education – places of transformative encounter with Jesus Christ, where students grow in wisdom and virtue and discover God’s great calling for their lives.
When tuition is out of reach, a family may have to set aside the education it wants for its child. Scholarships help bridge that gap. Schools can welcome new students, help current students stay, and bring more children into communities where faith and learning grow together.
~ $94 million spent on education across our
30
Catholic schools
Serving
7,300
K-12 students
3,000
students left to serve
Those open seats are a real opportunity—and a reminder that the ability to pay can keep children from a classroom already waiting to welcome them. More students can also strengthen schools and the parish communities that support them and their families.
The need behind the numbers
It takes about $94 million a year to operate our Catholic schools. It may be surprising to learn that tuition and scholarships provide only about $51 million, and Parent-teacher organizations raise about $3 million. Parishes, donors and the Archbishop’s Catholic Appeal contribute the remaining $40 million to sustain this mission. Scholarships funded by this tax credit will help more families enroll and remain enrolled while providing our schools with another source of support.
$94 million annual operating-cost funded by
/$94 M
/$94 M
/$94 M
Our Goals
Raise
$32
million
to support our students
Fill our
3,000
open seats
Turn a federal tax credit into a scholarship opportunity.
Starting January 1, 2027, an eligible taxpayer may receive a federal tax credit of up to $1,700 per individual or $3,400 for married couples filing jointly for a qualifying cash contribution to an approved scholarship-granting organization. Because a tax credit reduces federal income tax liability dollar-for-dollar, qualifying contributions within to redirect funds towards student scholarships. For married couples filing jointly, each spouse must make qualifying contributions to use their $1,700 credit. The contribution is made first and then claimed on the taxpayer’s 2027 federal tax return. ACE Scholarships is the Archdiocese of Denver’s scholarship partner for this new initiative.
If 100 eligible taxpayers each make a qualifying $1,700 contribution, together they could generate $170,000 for scholarships. If 1,000 do, that becomes $1.7 million. Each taxpayer’s usable credit depends on their individual tax circumstances, but one study indicates that approximately 62% of all taxpayers can benefit from the full $1,700 credit.
One contribution can help a child find a place to belong
Many contributions can open doors across Denver.
How it works
Plan and make your contribution!
Colorado has elected to participate in 2027.
Taxpayer makes contribution to SGO
Taxpayer receives required documentation to claim the credit
Tax return submitted;
credit reduces tax liability by the amount contributed in Step 1
Scholarships for students
& a happy taxpayer
Learn about giving through our ACE portal and schedule a 2027 contribution.
Visit the link below to pre-schedule your 2027 contribution TODAY.
(You will not be charged until the 2027 date you choose)
Opens the Archdiocese of Denver
- ACE Scholarships Giving Portal
OR schedule a contribution to a specific Catholic School:
Opens the Archdiocese of Denver
- ACE Scholarships Giving Portal
Could a scholarship help your family choose Catholic school?
The new program is designed to expand educational opportunities for K-12 students from eligible households. For example, families may qualify for a Federal Tax Scholarship if their household income does not exceed 300% of the area median gross income, adjusted for household size using IRS-published limits, and their child is eligible to enroll in a public K–12 school. A family of five in Denver County, could earn up to $466,800 in 2026 and qualify for a scholarship.
By setting eligibility at this level, the program is expected to serve many families who have traditionally earned too much to qualify for other scholarship opportunities but still face challenges affording tuition. The federal income threshold is estimated to include about 95% of children nationwide. ACE will share details regarding eligibility verification, scholarship availability, award amounts, and the application process once final program rules are adopted.
Median Income to Qualify for EFTC Scholarships
vs historical needs-based support
Seeds of Hope and Ace scholarship income limits for family of 5 for 2026/2027 school year
It’s important to note that the traditional scholarships from Seeds of Hope and Ace will continue to support our families in 2027 and beyond, thanks to the generous support of their donors. The Federal Tax Scholarships will be an additional avenue of support that has never been available to students in our Catholic schools before! Help us build this source of funds – see the “How It Works” tab to learn more.
**The earliest payment processing date is Jan 1, 2027.
Frequently Asked Questions
- FOR SUPPORTERS
Do I need children in Catholic school to give?
No. Eligible individual taxpayers may contribute whether or not they have children in school. A parent cannot direct a tax-credit contribution to benefit their own child.
Do I need to live in Colorado to donate to an Archdiocese of Denver Catholic School?
No. This is a Federal tax credit, so you can donate to the Scholarship Granting Organization of your choice and receive the benefit of the Federal tax credit, so long as you have sufficient Federal Tax Liability. However, only states that have opted to participate in the program can award scholarships to eligible students attending school in their state. Colorado has opted in, so every qualifying student attending one of our schools can apply to receive an EFTC scholarship.
My state has NOT opted in to the program. Can I still donate?
Yes. Eligible taxpayers in all 50 states can donate and be eligible for the dollar-for-dollar tax credit.
Does this really cost me nothing?
A qualifying contribution can be offset dollar-for-dollar against your federal income liability. You pay the contribution first and claim the credit on your 2027 tax return. The credit is non-refundable, meaning it cannot reduce your tax liability below $0. But any unused portion can be carried forward for up to 5 years. Ask a tax professional what amount fits your circumstances.
Is a tax credit the same as a charitable deduction?
No. A tax credit is substantially more powerful than a tax deduction. A credit reduces federal income tax owed; a deduction reduces taxable income. A taxpayer cannot claim both a credit and a charitable deduction for the same contribution.
Can I choose a specific child or school?
Contributions cannot be designated to a particular child, but they can be designated to a particular school. ACE determines student scholarship eligibility and awards the funds. We have individual donation pages for each of our Catholic schools so you can direct your donation to the school of your choice or, you may donate to the Archdiocese of Denver General School Fund. Click here to direct your donation. The General School Fund will be allocated based on family need, awarding the largest scholarships to families with the greatest need.
Can I contribute now?
Yes! You can pre-schedule your 2027 contribution TODAY (funds won’t hit your bank/credit card until the date you schedule in 2027).
Does the Education Freedom Tax Credit reduce funding for Colorado public schools?
No. The Education Freedom Tax Credit is an innovative approach that encourages private investment in scholarships without redirecting existing public-school funding. While traditional voucher programs use state-appropriated public funds, the Education Freedom Tax Credit uses private donations to expand educational freedom.
- FOR FAMILIES
Who may qualify?
Eligible K–12 students from households within the federal income limit may apply for an EFTC scholarship, including students already attending public or private schools. Meeting the federal eligibility requirements does not guarantee a scholarship; awards depend on ACE’s program criteria and available funding. ACE will provide final eligibility and application instructions.
When can my family apply?
ACE expects scholarship applications to open in mid-November 2026 for funds that will be awarded in 2027. Click here to reach their application page.
What can a scholarship cover?
Tuition and other qualifying K–12 educational expenses may be covered, subject to federal guidance and ACE’s program rules.
Let’s welcome more children into our schools!
We have room to welcome 3,000 more students.
Your family may be looking for one of those places—or you may be able to help another child find it. Together, we can turn this tax-credit opportunity into scholarships that make Catholic education possible for more Colorado families.
