White House / President·School choice
Treasury and IRS issue proposed rules for nationwide Education Freedom Tax Credit
The Treasury Department and IRS on Oct. 1 issued proposed regulations to implement the Federal Scholarship Tax Credit under section 25F, known as the Education Freedom Tax Credit, the first federal tax credit supporting private contributions for K-12 scholarships. Eligible taxpayers may claim an annual credit of up to $1,700 for qualifying contributions, or up to $3,400 for married couples filing jointly; companion temporary regulations set procedures for states and Scholarship Granting Organizations ahead of a Jan. 1, 2027 launch. Treasury Secretary Scott Bessent said 30 states have already opted in; the agencies estimate the program could fund as many as 2.2 million scholarships a year by 2030.
Sources
- U.S. Department of the TreasuryThe Trump Administration Advances the Establishment of America’s First Nationwide School Choice Program