Utah’s financial institutions have a unique opportunity to create meaningful impact while receiving a dollar-for-dollar state tax benefit through the Carson Smith Opportunity Scholarship, administered by the Children First Education Fund (CFEF).
Authorized under Utah Code 53E-7-Part 4, this program allows individuals and businesses, including banks, to direct a portion of their state tax liability toward scholarships for students with disabilities who are attending approved private schools or homeschooling.
2026 Tax Credit Cap
The tax credit cap for 2026 is $13.48 million. There is still room for more banks to participate and enjoy the benefits.
Tax Credit Flexibility: Carryforward and Carryback
Utah law allows for flexible use of tax credits:
- Carry Forward: Donations made in 2026 can be applied toward your state tax liability for up to three years.
- Carry Back: Eligible 2027 donations can also be carried back and applied to your 2026 Utah tax return.
Why This Matters for Banks
Participating in the Carson Smith Opportunity Scholarship program through CFEF provides multiple benefits for banks:
- Dollar-for-Dollar Tax Credit: Unlike deductions, contributions are eligible for a full credit against your Utah state income tax, up to the statutory cap.
- Direct Educational Impact: Your contribution helps fund scholarships for students with disabilities, empowering families to choose learning environments that best meet their child’s needs.
- CRA Consideration: In many cases, these donations may qualify as Community Reinvestment Act (CRA)-eligible activities. CFEF can provide documentation for CRA examiners.
- Community Leadership: Participating banks are recognized as partners in expanding educational opportunities for underserved student populations.
Work with CFEF
As an approved Scholarship Granting Organization (SGO), CFEF works in compliance with state guidelines to administer the Carson Smith Opportunity Scholarship. We provide clear documentation, transparency, and support throughout the donation process.
For more information, visit cfe-fund.org or reach out directly to our team to discuss your bank’s goals and timelines.
Turn Tax Dollars into Educational Opportunity
By partnering with the Carson Smith Opportunity Scholarship program, Utah banks can make a lasting difference in the lives of students with disabilities – while maximizing the impact of their tax dollars. It’s a smart, strategic investment in both community and education.