Read the law yourself.
Every figure and rule on this site traces to one of these documents. Each has a plain summary and a link to the official text.
Federal law
The statute Congress passed, and the sections it relies on.
4 documents
- §25F26 U.S.C. §25F: Qualified elementary and secondary education scholarshipsThe federal credit itself. It sets the $1,700 limit, what counts as a qualifying donation, and the rules a scholarship granting organization has to follow.
- §139K26 U.S.C. §139K: Scholarships aren't taxable incomeScholarships from a scholarship granting organization aren't counted as income for the student or the family.
- §530(b)(3)26 U.S.C. §530(b)(3): Qualified K-12 education expensesThe list of K-12 expenses a scholarship can pay for. The credit borrows it from the rules for Coverdell education savings accounts.
- P.L. 119-21Public Law 119-21, §70411(c): When the credit takes effectThe effective dates. The credit applies to tax years ending after December 31, 2026, so the first donations that count are made on or after January 1, 2027.
IRS and Treasury guidance
How the IRS and Treasury are putting the law into practice.
10 documents
- Notice 2025-70IRS Notice 2025-70: Request for commentsTreasury's first request for public comment on how to run the credit: state certification, the 90% spending test, donor receipts and income checks. Comments closed December 26, 2025.
- Rev. Proc. 2026-6Revenue Procedure 2026-6: How a state joinsThe only way a state opts in for 2027. The governor files Form 15714 with the IRS, on or after January 1, 2026.
- IRS FSTC pageIRS Federal Scholarship Tax Credit program pageThe IRS's page for the credit. It lists the participating states and is where the donor claim form will be posted.
- Guidance previewTreasury preview of the coming rulesTreasury's remarks describing the rules on the way: the 90% test and its safe harbor, organizations that work in several states, income checks, annual audits, the donor number and an IRS portal.
- Treasury releaseTreasury press release and fact sheetThe release that named the program the Education Freedom Tax Credit and committed to proposed rules by the end of September 2026.
- October 2026 releaseTreasury press release of October 1, 2026The release that announced the proposed and temporary regulations. It confirms 30 participating states, up to $3,400 on a joint return, and Treasury's estimate of nearly $26 billion a year in donations by 2030.
- Fact sheetTreasury fact sheet on the Education Freedom Tax CreditTreasury's plain-language summary, released with the rules. How the credit works, who qualifies, the 2027 state deadlines and what the scholarships can pay for.
- Proposed rulesTreasury proposed regulations (REG-117199-25)The detailed rules for donors, scholarship granting organizations and states. Released October 1, 2026 and published in the Federal Register on October 2. Comments are due December 1, 2026. Taxpayers, organizations and states may rely on them for donations made on or after January 1, 2027.
- Temporary rulesTreasury temporary regulations (T.D. 10057)Binding rules for the run-up to 2027: how states make their elections and submit their lists, what states can and can't require of scholarship granting organizations, and how organizations register with the IRS. In effect from September 1, 2026 until October 1, 2029.
- Form 8525ComingIRS Form 8525, Federal Scholarship Tax CreditThe form donors will file with their 2027 return to claim the credit. Treasury's proposed rules name it and say what goes on it: each organization's unique donor number. The form itself isn't out yet. Expected before the 2028 filing season.
State law and records
State statutes and agency pages the site cites. Each state page lists its own records.
4 documents
- Ohio R.C. 5747.73Ohio Revised Code 5747.73: Ohio's scholarship donation creditOhio's own credit for donations to a certified scholarship granting organization: up to $750 for an individual or $1,500 for a couple filing jointly.
- AlabamaAlabama Department of Revenue: The Education Freedom Tax Credit programAlabama's page for the federal program, with the criteria it uses to certify scholarship granting organizations.
- Tennessee PC 720Tennessee Public Chapter 720 (SB 2206)The Tennessee law that opted the state in, signed May 5, 2026. Tennessee's Department of Education certifies scholarship granting organizations.
- State recordsState opt-in recordsEach state's own record of its decision: the governor's announcement, the executive order or the bill. We link them on each state's page and check each one against the IRS list.
Income tables
The numbers behind who qualifies.
1 document
Also cited
Other federal sections the site refers to.
2 documents
- §26(a)26 U.S.C. §26(a): The limit on non-refundable creditsThe overall cap on non-refundable personal credits, which the scholarship credit is one of. It's why the credit can't be more than the tax you owe.
- §4226 U.S.C. §42: The low-income housing creditThe income measure the scholarship limit borrows: area median gross income, as HUD publishes it for this credit.
CEN SGO's own documents
CEN SGO's own policies.
1 document
Links checked September 28, 2026. Nothing on this page is tax or legal advice.