§530(b)(3)
Photo by Kimberly Farmer on Unsplash
26 U.S.C. §530(b)(3): Qualified K-12 education expenses
The list of K-12 expenses a scholarship can pay for. The credit borrows it from the rules for Coverdell education savings accounts.
- Status
- Published
In plain English
- 01Tuition and fees.
- 02Books, supplies and equipment.
- 03Tutoring and special-needs services.
- 04Other items the section lists, some only when the school requires them.
The official text
As published on uscode.house.gov, copied September 28, 2026. The official copy is the one that counts.
(3) Qualified elementary and secondary education expenses
(A) In general
The term "qualified elementary and secondary education expenses" means-
(i) expenses for tuition, fees, academic tutoring, special needs services in the case of a special needs beneficiary, books, supplies, and other equipment which are incurred in connection with the enrollment or attendance of the designated beneficiary of the trust as an elementary or secondary school student at a public, private, or religious school,
(ii) expenses for room and board, uniforms, transportation, and supplementary items and services (including extended day programs) which are required or provided by a public, private, or religious school in connection with such enrollment or attendance, and
(iii) expenses for the purchase of any computer technology or equipment or Internet access and related services, if such technology, equipment, or services are to be used by the beneficiary and the beneficiary's family during any of the years the beneficiary is in school.
Clause (iii) shall not include expenses for computer software designed for sports, games, or hobbies unless the software is predominantly educational in nature.
(B) School
The term "school" means any school which provides elementary education or secondary education (kindergarten through grade 12), as determined under State law.
(C) Computer technology or equipment
The term "computer technology or equipment" means computer software (as defined by section 197(e)(3)(B)), computer or peripheral equipment (as defined by section 168(i)(2)(B)), and fiber optic cable related to computer use.
On this site
Where we use it
The pages whose rules and figures come from §530(b)(3).
Federal law
Related 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.
- 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.