Treasury Proposes Federal Scholarship Tax Credit Rules for 2027

How are states thinking about education choice as policies mature and expand? On The Future of Education podcast, ExcelinEd's Chairman Gov. Jeb Bush joined Michael Horn and Ryan Delk to reflect on Florida’s experience and the key considerations shaping future policy decisions. It’s a thoughtful conversation on how state-level leadership is influencing access, structure and long-term sustainability. Listen to the full episode now: https://lnkd.in/gsCyrd8R

What is a federal tax credit AND how does it work? 🤔 Let’s break it down. ⬇️ A federal tax credit directly reduces the amount of federal income tax you owe — dollar for dollar. That means it’s not just a deduction… it’s a full credit applied to your tax liability. When you contribute to a qualified Scholarship Granting Organization (SGO) or Student Scholarship Organization (SSO), you may be eligible to receive a 100% non-refundable federal tax credit for your contribution. That means: • You support student scholarships 📚 • You may reduce your federal tax liability 💰 • You can combine this with eligible state tax credits for even greater impact Same mission. Expanded impact. More students served. 💡 Stay tuned for contribution limits and how to participate. #FederalTaxCredit #SchoolChoice #EducationFreedom #StudentScholarships #TaxSmartGiving

Given today's unveiling of Treasury regulations, the timing of this ExcelinEd podcast conversation on Implementing the Federal Scholarship Tax Credit couldn't be better. Hopefully you'll find some useful information and insights from this conversation that Abigail Burrola and I had with Luke Ragland of the Daniels Fund (link to listen in comments):

A new federal education tax credit is scheduled to become available in 2027. Under proposed Treasury and IRS regulations, eligible taxpayers may claim a nonrefundable federal income tax credit for qualifying cash contributions to approved Scholarship Granting Organizations. The potential credit is: • Up to $1,700 per eligible taxpayer • Up to $3,400 for qualifying married couples filing jointly • Available for qualified contributions beginning January 1, 2027 The scholarship organizations and participating states must meet federal requirements, and taxpayers will need the appropriate contribution documentation. New York residents may potentially contribute to an eligible organization in another participating state, even if New York does not elect to participate. IRS Help can explain the proposed rules and help taxpayers determine how the credit may fit into their 2027 planning. Learn more from IRS Help - Info@IRSHelp.com | Call: 1-800-477-4357 #IRSHelp #TaxPlanning #EducationTaxCredit #FederalTaxCredit #NewYorkTaxpayers

The Treasury Department and IRS have proposed regulations for the new Federal Scholarship Tax Credit, which will allow taxpayers to receive a dollar-for-dollar federal income tax credit for qualifying contributions to scholarship-granting organizations beginning in 2027. The proposed rules guide taxpayers, states, and SGOs while establishing safeguards and procedures ahead of the program’s launch. Read the full update from Liskow attorneys Leon Rittenberg III, Caroline Lafourcade, and Abigail Strohmeyer below. https://lnkd.in/gfaTuFgG

CPAs: Are your Oklahoma clients missing a tax credit they should know about? Oklahoma taxpayers may be able to support public education while also qualifying for a state income tax credit through eligible contributions to the Oklahoma Equal Opportunity Education Fund. Depending on the contribution structure, eligible donors may qualify for a 50% or 75% Oklahoma state income tax credit. For CPAs, this can be a useful planning conversation with both individual and business clients. This carousel breaks down: ✨ Who may qualify ✨How the 50% and 75% credit structures differ ✨The current individual, joint, and business credit limits ✨How OEOEF supports Oklahoma public education  For the right client, tax planning can also create meaningful impact for Oklahoma schools and students. Learn more at oeoef.org Tax situations vary. Clients should consult their tax professional regarding eligibility and treatment.

📚 Did you know eligible tuition fees may help reduce the income tax you owe potentially bringing your tax payable down to zero? 🎓💰 If you don't need your full current-year federal tuition amount, you may be able to transfer part of the unused amount to an eligible family member, subject to applicable limits and conditions. 👉 Amounts you don't use or transfer may generally be carried forward to a future year. Be sure to report your eligible tuition when filing your tax return and keep your T2202 or other applicable official tuition certificate for your records. 💡 Québec residents: Provincial tuition tax credit and transfer rules differ from the federal rules, so it's important to consider both when filing. #TuitionTaxCredit #Students #StudentTaxes #CanadianTaxes #TaxTips #TaxCredits #UniversityStudents #CollegeStudents #TradeSchool #TaxPlanning

The U.S. Treasury and IRS have announced proposed regulations for the new Education Freedom Tax Credit, which is scheduled to begin January 1, 2027. Read more here: https://lnkd.in/gtqCauVA Under the proposed rules, individuals could receive a federal tax credit of up to $1,700 for qualifying contributions to eligible Scholarship Granting Organizations, while married couples filing jointly could receive up to $3,400.

A 529 plan is a tax-advantaged education savings plan. Before choosing a plan, it's important to consider not only the state tax treatment but also any associated fees and expenses. Availability of a state tax deduction will depend on your state of residence, as state tax laws and treatment may vary from federal tax laws. If you make nonqualified distributions, earnings will be subject to income tax and a 10% federal penalty tax. This material is for informational purposes only and is not a replacement for real-life advice. Consult your tax, legal, and accounting professionals if you are considering a 529 strategy. Sources Internal Revenue Service, January 30, 2026 Kiplinger, April 14, 2026 Forbes, May 25, 2026 Saving for College, April 30, 2026