Governors can opt-in to Federal Tax Credit Scholarship Program for K-12 scholarships

Washington, D.C. – Today, the U.S. Department of the Treasury through the Internal Revenue Service (IRS) just issued Revenue Procedure 2026-6 to allow the nation’s governors the ability to make an advance election to opt in to the federal tax credit scholarship program. 

The federal tax credit scholarship was enacted by President Trump and Congress as part of the Budget Reconciliation Act (“One Big Beautiful Bill”) in July. The federal law provides governors with the discretion whether to allow their respective state’s children to benefit from the new scholarships that would result from the tax credit scholarship program. Governors must “opt in” to the federal tax credit scholarship programs not later than Jan. 1, 2027, when it takes effect, in order for students in that state to benefit from the incentive.

The federal tax credit scholarship program would help K-12 students access a school or education service of their parents’ choice. Scholarships are funded with private donations, not federal money, and donors receive a 100 percent federal tax credit of up to $1,700 annually. Students could use scholarships for tuition, tutoring to address learning loss, special needs services or education technology, among other uses.

To learn more, please visit investineducation.org.