IRS Issues News Release Announcing State Participation in Federal Scholarship Tax Credit Program

The IRS issued a news release announcing that 27 states have elected to participate in the Federal Scholarship Tax Credit (FSTC) program enacted under the One, Big, Beautiful Bill. The program allows eligible taxpayers to claim a federal tax credit of up to $1,700 for qualified contributions to Scholarship Granting Organizations (SGOs) that provide scholarships for eligible elementary and secondary education expenses. State participation in the program is voluntary, and the IRS identified participating states as of early 2026. [IR-2026-76, 06/08/26]

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