27 States Join Federal Scholarship Tax Credit Program

The Internal Revenue Service (IRS) announced that 27 states have opted into the Federal Scholarship Tax Credit (FSTC) program, enabling eligible taxpayers to claim a federal tax credit for contributions to Scholarship Granting Organizations (SGOs) supporting elementary and secondary education.

Enacted under the "One, Big, Beautiful Bill," this voluntary program allows taxpayers to claim up to $1,700 by contributing to qualified SGOs in participating states. 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. We are hopeful that additional states will decide to participate."

As of early 2026, states including 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 have formally joined. The IRS will continue to update the official list of participating states.