Dozens of States Opt Into New Private School Tax Credit Program

Over two dozen states have opted into a program for a new federal tax credit for donations to private school scholarships, a Treasury official said Friday,

The break, created by Republicans in the 2025 tax-and-spending law, applies to donors to scholarship-granting organizations that typically provide financial assistance for low- to middle-income K-12 students to attend these schools. The law requires states to opt into the program and identify organizations whose donors would be eligible.

The IRS and Treasury Department will release proposed rules this year ahead of the tax credit taking effect on Jan. 1 2027, said Treasury Attorney-Adviser Amber ...