IRS FSTC page
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IRS Federal Scholarship Tax Credit program page
The IRS's page for the credit. It lists the participating states and is where the donor claim form will be posted.
- Status
- Published
In plain English
- 01Lists the 30 participating states (updated September 14, 2026).
- 02Links Form 15714, the state election.
- 03Will carry the donor form and instructions before the 2028 filing season.
The official text
As published on irs.gov, copied September 28, 2026. The official copy is the one that counts.
Federal Scholarship Tax Credit (FSTC) for donations to scholarship granting organizations (Internal Revenue Code Section 25F)
Advance elections to participate under Section 25F for 2027
Beginning Jan. 1, 2027, individual taxpayers may be able to claim a Federal Scholarship Tax Credit (FSTC) for certain cash contributions up to $1,700 to Scholarship Granting Organizations (SGOs). A state or the District of Columbia (state) must choose to participate in the FSTC and provide a list of SGOs in that state to the IRS before an individual taxpayer can donate to an SGO within that state and claim the FSTC.
Participating states for 2027 (as of September 14, 2026)
The following states have made an advance election to participate under Section 25F for 2027:
- Alabama
- Alaska
- Arkansas
- Colorado
- Florida
- Georgia
- Idaho
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- North Dakota
- North Carolina
- Ohio
- Oklahoma
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Virginia
- West Virginia
- Wyoming
- Page last reviewed or updated
- September 16, 2026
On this site
Where we use it
The pages whose rules and figures come from IRS FSTC page.
IRS and Treasury guidance
Related 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.
- 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.
- Proposed rulesTreasury proposed regulationsExpected by the end of September 2026. We'll link them here and update every page they affect.
- IRS formIRS form for claiming the creditExpected before the 2028 filing season, when donors claim their 2027 credit.