IRS News Release: States Allowed Advance Election to Participate in New Tax Credit

The IRS published a news release announcing that States can make an advance election to participate in a new tax credit for calendar year 2027. The credit, established under the One Big Beautiful Bill Act allows individual taxpayers to claim up to $1,700 for contributions to Scholarship Granting Organizations serving elementary and secondary students from low- and middle-income families. States wishing to participate must submit Form 15714 on or after Jan. 1, 2026, with future guidance to address deadlines for submitting State SGO lists and procedures for subsequent calendar years. [IR-2025-121 (Dec. 12, 2025)]

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