The tax credit launches on January 1, 2027, and 30 states have already opted into the nationwide program. Treasury issued accompanying temporary regulations to guide Scholarship Granting Organizations and state governments through the administrative setup. The administration stated the program is intended to expand educational freedom and restore parental rights by giving families more schooling options.
Wednesday, October 21, 2026
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Treasury Establishes First Federal School Choice Tax Credit
US Politics20 days ago
The Internal Revenue Service and Treasury Department released proposed rules for the Education Freedom Tax Credit, which offers an annual credit of up to $1,700 for taxpayers donating to K-12 scholarships. Married couples filing jointly may claim up to $3,400 because the regulations allow them to count as two taxpayers for the benefit. These rules implement section 25F to establish the first federal tax credit for private contributions to primary and secondary education scholarships.
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