Congress created a federal tax credit for donations to scholarship-granting organizations that applies to contributions starting January 1, 2027. A donor can claim up to $1,700, applied after any state credit. It only works in states whose governor, or a designee, elects in and submits a list of eligible organizations.
Arizona has not opted in. Gov. Katie Hobbs vetoed SB 1142 in April 2026, writing that it was irresponsible to sign before federal guidance existed, and KTAR reported in August that she had vetoed three opt-in measures while her office says she has taken no position on the program itself. The bill's sponsor has said the governor could opt in without legislation.
Treasury guidance published in October 2026 sets January 1, 2027 for a state's advance election and February 15, 2027 for its list of organizations. Whether Arizona acts by then is undecided, and we won't guess. Until the state opts in, Tucson families should plan around the ESA and Arizona's own STO credits, which are unaffected.
Combining it with other sources
In Tucson the main decision is ESA or STO for each child each year; the two can't be combined for the same student. A school's own discounts, such as parish, member or sibling rates, lower the bill and can usually sit alongside either path.