Kentucky Education Fund incorporated ahead of 2027 federal scholarship tax credit program

MEDIA INQUIRIES:

All media inquiries should be directed to:

Casey Ellis | [cellis@kcadd.org] [502-514-8654]

Will Hodges | [whodges@kyeducationfund.org] [270-299-6071]

FRANKFORT, Ky. – The Kentucky Education Fund has been incorporated as a statewide 501(c)(3) nonprofit organization and is completing its organizational work in preparation for a new federal scholarship tax credit program beginning Jan. 1, 2027.

Kentucky elected to participate in the federal program through House Bill 1 during the 2026 Regular Session. Beginning in 2027, eligible individual taxpayers may claim a nonrefundable federal income tax credit of up to $1,700 annually for qualifying cash contributions to approved Scholarship Granting Organizations, or SGOs.

Those organizations will use qualifying contributions to provide scholarships for eligible K-12 educational expenses.

The Fund was created to provide a statewide, nonpartisan option for administering qualifying contributions and scholarships under the new program.

Kentucky’s Area Development Districts were identified as a partner because of their collective representation across all 120 Kentucky counties. Executive directors representing Kentucky’s 15 Area Development Districts served as the Fund’s initial incorporators for the purpose of establishing the nonprofit corporation.

“For more than 50 years, Kentucky’s Area Development Districts have served as the conveners and planners across all communities, urban and rural,” Senate President Pro Tem David Givens said. “Having Area Development District leaders serve as the founding body of the Kentucky Education Fund is a natural extension of that work, bringing together regional knowledge, trusted partnerships and a shared commitment to creating greater opportunities for all Kentuckians.”

The Kentucky Education Fund filed its articles of incorporation July 15 and received federal recognition as a 501(c)(3) nonprofit organization July 20. The Fund received approval from the Kentucky Secretary of State on Aug. 27 as part of the state’s SGO process.

Will Hodges, former superintendent of Green County Schools, is serving as an adviser to the Fund. Hodges served as superintendent from 2018 until his retirement in 2026 and previously held administrative and financial leadership roles within the school district.

“The Kentucky Education Fund offers Kentuckians a statewide SGO option designed to serve K-12 students across the Commonwealth, from Paducah to Pikeville,” Hodges said. “The Area Development Districts brought regional knowledge from every part of Kentucky to the Fund’s formation, helping ensure that statewide reach was part of the conversation from the beginning.”

The Fund’s incorporators are developing a proposed permanent governance structure that would include representation from each of Kentucky’s 15 ADD regions.

The ADDs’ ongoing role would be limited to appointing their respective regional representatives. The final structure will be established through the Fund’s bylaws and organizational process.

The Kentucky Education Fund is a separate and independent legal entity from Kentucky’s Area Development Districts and the Kentucky Council of Area Development Districts.

Work during the remainder of 2026 will focus on completing the Fund’s organizational requirements and preparing for implementation of the federal program. The fund will be ready to receive donations Jan. 1, 2027, in accordance with federal law.

Additional information for prospective donors, schools and families will be released as those details are finalized. Updates are available at kyeducationfund.org and through the Kentucky Education Fund’s Facebook page.

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About the Kentucky Education Fund

The Kentucky Education Fund is a statewide 501(c)(3) nonprofit organization established to provide scholarships for eligible K-12 educational expenses through the federal scholarship tax credit program beginning in 2027.