27 States Join Federal Scholarship Tax Credit Program

Twenty-seven U.S. states have elected to participate in the Federal Scholarship Tax Credit (FSTC) program, allowing eligible taxpayers to claim a federal tax credit for contributions supporting elementary and secondary education scholarships.

Enacted under the One, Big, Beautiful Bill, this voluntary program offers a tax credit of up to $1,700 for qualified contributions made to Scholarship Granting Organizations (SGOs) located in participating states. These SGOs are responsible for providing scholarships for qualified elementary and secondary education expenses.

IRS Chief Executive Officer Frank J. Bisignano said, "It’s encouraging to see that 27 states have already signed up to participate in this program that promotes and supports elementary and secondary education." He added, "We are hopeful that additional states will decide to participate."

The participating states include Alabama, Alaska, Arkansas, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Louisiana, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming. The IRS will continue to maintain and update the official list of states as they complete the required election and submission process.