The Children First Education Fund (CFEF) is excited to share an important milestone: Utah has officially reached the 2025 cap for tax credits under the Carson Smith Opportunity Scholarship. This achievement reflects the strong commitment of Utah taxpayers to support students with disabilities and their access to high-quality, personalized education through private schools or homeschooling.
As a reminder, these tax credits are available to individuals and businesses that donate to CFEF, a state-certified scholarship granting organization under Utah Code 53E-7-Part 4. Contributions directly fund scholarships for students with special needs, helping families across Utah choose the learning environments that best serve their children.
What This Means for 2025
The tax credit cap for calendar year 2025 has now been met. This means that CFEF cannot issue any additional new tax credits for donations made during the 2025 tax year.
However, for those who still wish to support the scholarship program this year, there are flexible options available.
Tax Credit Options for Donors
Even though the 2025 cap has been reached, the law allows donors to carry forward or carry back their tax credit allocation:
- Carry Forward: If you make a donation in 2026, you can apply for a 2026 tax credit and choose to carry it forward to apply against your 2026 state tax liability.
- Carry Back: If you donate in early 2026 and apply for a 2026 credit, you may elect to carry that credit backward and use it to offset your 2025 Utah state income taxes, provided you meet eligibility criteria and timelines.
This flexibility ensures that donors who missed the 2025 cap can still benefit from tax credits while supporting Utah students.
Looking Ahead to 2026
CFEF will begin accepting donations for 2026 tax credits on January 1, 2026. Given how quickly the 2025 cap was reached, we encourage prospective donors to act early next year to secure a credit. These funds are instrumental in providing life-changing educational opportunities to students with disabilities, and early participation helps us serve as many families as possible.
Why These Credits Matter
Each dollar donated helps expand educational choice for Utah families who need it most. Through your support, students gain access to specialized instruction, smaller class sizes, and learning environments that are better aligned with their unique needs. The tax credit program is not only a smart financial decision for donors, but also a meaningful investment in Utah’s future.
Stay Informed
To learn more about how the tax credit program works or to receive updates about credit availability for 2026, visit cfe-fund.org or reach out to our team directly.
Thank you to all who contributed this year. Your generosity has helped us reach this incredible milestone. We look forward to continuing this important work together in 2026.