Federal Scholarship Tax Credit
What happened
These temporary regulations, signed by Donald Trump and effective December 1, 2026, address the new nonrefundable Federal tax credit for qualified contributions to scholarship granting organizations (SGOs) made in 2027 and later taxable years. The credit, established by the One, Big, Beautiful Bill Act (OBBBA), funds qualified elementary and secondary education scholarships. These regulations implement requirements for States electing to participate and for certified SGOs, also covering reporting and recordkeeping.
Why it matters
This policy creates a new financial incentive for individuals to contribute to education scholarships, potentially increasing funding for elementary and secondary education. It establishes the rules and procedures for how states and scholarship organizations must operate to access and manage these tax credit contributions. This means new requirements for states and organizations involved in scholarship programs.
Who it affects
- ›Individuals making qualified contributions to scholarship granting organizations.
- ›States that elect to participate in this Federal tax credit program.
- ›Organizations certified as scholarship granting organizations.
- ›Individuals or their dependents receiving SGO-provided scholarships.
The receipts are official. The summary is ours.
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