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.
2025 Tax Credit Cap Reached
We’re excited to announce that Utah has reached the 2025 cap for available tax credits under the Carson Smith Opportunity Scholarship. This milestone reflects the incredible generosity of donors and strong statewide support for educational choice for students with special needs.
Although the 2025 cap is now full, banks and other donors still have options to participate and apply credits toward their 2025 taxes.
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 2026 state tax liability.
- Carry Back: Eligible 2026 donations can also be carried back and applied to your 2025 Utah tax return.
This means that by donating early in 2026, banks can still support scholarships and potentially apply the credit to their 2025 taxes.
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 opportunity for underserved student populations.
Plan Now for 2026
Because the 2025 cap filled quickly, we strongly encourage banks to plan for early participation in 2026, when the new tax credit allocation becomes available on January 1, 2026. Early donors are more likely to secure their preferred credit amount.
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.
