Thirty states have elected to participate in a federal education tax credit that launches January 1, 2027, according to the Internal Revenue Service (IRS). Under the Federal Scholarship Tax Credit, also known as the Education Freedom Tax Credit, individual taxpayers will be able to claim credits of up to $1,700 annually for charitable contributions to certain public charities that grant scholarships for qualifying educational expenses.
To participate, states must submit lists of eligible scholarship-granting organizations (SGOs) to the IRS. The agency announced it will launch a new online portal for states to register those organizations for the 2027 calendar year.
The IRS is currently verifying the contact information each participating state submitted when electing to participate. States can update their point of contact using Form 15714, Advance Election to Participate under Section 25F, according to the agency.
States that have not yet elected to participate can still do so by submitting Form 15714, ensuring the IRS has current contact information to share updates about the portal launch and program implementation.