Tax information for federal, state and local governments

Recent developments

Changes to guidance, law and procedures that affect federal, state and local governments.

Federal Scholarship Tax Credit for Donations to Scholarship Granting Organizations (Internal Revenue Code section 25F)

Beginning January 1, 2027, individual taxpayers may be able to claim a federal scholarship tax credit (FTSC) for certain cash contributions up to $1700 to Scholarship Granting Organizations (SGOs).  A state or the District of Columbia (state) must choose to participate in the FTSC and provide a list of SGOs in that state to the IRS before an individual taxpayer can donate to an SGO within that state and claim the FTSC.

Participating states for 2027 under Section 25F