GUEST OPINION: Federal tax credit unlocks funding for Colorado students

Colorado is poised to gain hundreds of millions of dollars in new resources for K-12 education. Much of that investment will be driven not by another line item in a school district budget, but by Coloradans choosing to invest directly in students. The federal Education Freedom Tax Credit will take effect in 2027, allowing taxpayers with a federal tax liability to claim a dollar-for-dollar tax credit for contributions to scholarship granting organizations like ACE Scholarships, to help families pay for qualified educational expenses. Colorado Gov. Jared Polis deserves real credit for choosing our state to participate. The opportunity for organizations like mine is to ensure students across Colorado benefit. Getty Images The potential impact is significant. The Common Sense Institute estimates Colorado taxpayers could make as much as $3.3 billion in potential contributions that qualify for the federal tax credit. Even modest participation could generate substantial new resources for K-12 education: a 5% participation rate could produce an estimated $164 million in a single year, while 15% participation could generate nearly $493 million. That's an astonishing amount of new money available to support students in every learning environment. That is what makes the Education Freedom Tax Credit so transformative. It could unlock hundreds of millions of dollars in scholarship funding through charitable giving, connecting students with the educational support they need to succeed. For Colorado students, that flexibility matters. A student falling behind in math could receive targeted tutoring. A child with dyslexia could access interventions. A working family could enroll their child in an after-school program that provides academic help and a safe, structured environment. A student with unique learning needs could receive educational services and specialized support that might otherwise be financially out of reach. For students already in their neighborhood public school, these resources can provide an added academic advantage. For others, they can help make a different educational setting possible. A family might choose a charter or private school that fits their goals, combine a public school education with tutoring or enrichment or pursue dual enrollment and other opportunities centered around a student's individual needs. Access to those services shouldn't be treated as a quiet luxury. They are exactly the kinds of investments that can change the trajectory of a child's education. This approach also represents a different way of thinking about education funding. Eligible taxpayers are incentivized to support students through charitable giving, while local scholarship granting organizations can turn local generosity into practical help for families. Schools, donors and nonprofits will work together to expand educational opportunity while ensuring resources reach families directly. Our state already has a strong foundation on which to build. For more than two and a half decades, ACE has worked with Colorado families and schools to expand access to educational opportunity. ACE has delivered more than 44,000 scholarships to Colorado students, representing more than $107 million in educational opportunity. Now, we have the opportunity to build on that experience. ACE welcomes the chance to work with networks of schools we traditionally have not served. Our growing number of partnerships, including our work with national and statewide charter school networks, reflects our commitment to expanding access across Colorado's diverse educational ecosystem. This means connecting families with opportunities that fit their goals, regardless of where they learn. At a moment when the Education Freedom Tax Credit risks becoming another political debate, it's worth refocusing on what families care about most. Parents and educators want students to read at grade level. They want them to feel engaged in school. They want access to extra help that closes gaps, addresses learning shortfalls and opens doors to future success. We should aim to give every child in Colorado every possible advantage. The strongest system isn't built around a single option. It is built around students, supported by great teachers, mentors and community organizations working toward the same goal. Strengthening that network is the smartest investment Colorado can make. For generations, Americans have believed education is the surest path to the American dream. By expanding access to educational opportunities, this law gives Colorado the chance to strengthen that promise for a new generation. That is more than a new tax credit. It is a generational investment in Colorado's students — but only if we nurture an environment that helps students build an education suited to what they value. Norton Rainey is the CEO of Greenwood Village-based ACE Scholarships.