Montana’s two state education-donation tax-credit programs have recorded a combined $14.4 million in claimed credits for 2026, as officials prepare to add a separate federal scholarship incentive beginning next year.
The state’s live donation portal showed $7.2 million claimed for the Innovative Educational Program Tax Credit and another $7.2 million for the Student Scholarship Organization Tax Credit as of Sept. 24. Both pools listed no remaining credit, although some invalidated amounts were scheduled to return to availability Oct. 7.
Gov. Greg Gianforte highlighted the coming federal layer during a Sept. 23 education roundtable in Great Falls. Montana opted into the Federal Tax Credit Scholarship Program earlier in 2026, and taxpayers may receive a federal credit of up to $1,700 for qualifying contributions to scholarship-granting organizations starting in 2027, according to the governor’s announcement.
The federal credit is not a direct payment to a school or family. A U.S. Department of Education fact sheet says taxpayers contribute to recognized scholarship-granting organizations, which then award K–12 scholarships for eligible education expenses. Participating states identify the organizations allowed to operate in their programs.
For donors, the distinction matters because eligibility, timing and reporting may differ between the state and federal credits. Contributions recorded through Montana’s state portal do not automatically establish eligibility for the federal benefit, which begins under a separate framework in 2027.
Two systems, one policy direction
Montana’s existing credits and the new federal credit are legally separate. The state portal tracks donations to public-school districts under the innovative-education program and to student scholarship organizations that support other education options. The federal program will operate under national tax rules and requires state participation, creating another potential funding channel rather than enlarging Montana’s current credit caps.
The current state totals also provide practical context for the federal rollout: Montana’s 2026 state credits were already fully claimed when the new program became part of the governor’s public agenda. The portal lists more than 20 registered student scholarship organizations and public-school districts across the state as potential donation recipients.
Montana previously raised the caps for both state programs. A 2024 program update said legislation increased each cap from $2 million to $5 million after donor demand grew. The 2026 portal figures show the programs have since expanded beyond those earlier limits.
At the Great Falls roundtable, Gianforte also pointed to standardized public-school open enrollment, partial enrollment for home-school and nonpublic-school students, public charter schools, online learning and higher scholarship caps. The meeting included representatives of public, charter, independent, home and online education.
The roundtable did not itself change Montana law or create the federal credit. The next operational questions are which scholarship-granting organizations the state will recognize for the federal program, what expenses their scholarships will cover and how state officials will distinguish the federal process from the existing Montana donation system. Those details will determine how easily taxpayers and families can use the new option in 2027.
