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#scholarship-granting-organizations

Moharimet Elementary School, Madbury, New Hampshire — illustrative; New Hampshire is a participating state — Photo: John Phelan, CC BY-SA 4.0

Policy Watch|United States

Federal school-choice tax credit: 30 states have opted in for 2027, and the rules are open for comment until 1 December

The IRS list of states participating in the new Federal Scholarship Tax Credit (section 25F) names 30 states for 2027 as of 22 October. From 1 January 2027 donors to approved scholarship-granting organizations in those states can claim a non-refundable credit of up to $1,700 ($3,400 joint). Treasury’s proposed regulations, open for comment until 1 December, would bar states from limiting which schools scholarships can be used at.

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