Big news for families, schools and donors who want to expand access to education.
The U.S. Treasury and IRS have announced proposed regulations for the new Education Freedom Tax Credit, which is scheduled to begin January 1, 2027. Under the proposed rules, individuals could receive a federal tax credit of up to $1,700 for qualifying contributions to eligible Scholarship Granting Organizations, while married couples filing jointly could receive up to $3,400.
For donors, that means a new opportunity to direct tax-advantaged charitable giving toward scholarships that can make a meaningful difference for students.
For schools, it could mean more resources to help welcome and serve families who might otherwise find tuition out of reach.
And for students and parents, scholarship funds could help cover qualified educational expenses including private-school tuition, tutoring, special-needs services, books, supplies and technology.
At Legacy Deo, we believe expanding access to Christ-centered education begins with people willing to invest in students and families. This new federal tax credit has the potential to open even more doors.
We’ll continue sharing updates as the rules are finalized and preparations move toward the 2027 launch.
Meanwhile, here's an excerpt from the federal announcement today:
The U.S. Department of the Treasury and the Internal Revenue Service issued proposed regulations to implement the new Federal Scholarship Tax Credit under section 25F, commonly known as the Education Freedom Tax Credit, the first federal tax credit supporting private contributions for K-12 scholarships.
Under the proposed regulations, 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. Treasury and the IRS also issued companion temporary regulations to establish key procedures for states and Scholarship Granting Organizations to prepare for the launch of the tax credit on January 1, 2027.