IRS News Release IR-2026-76: More Than Half the States Elect to Participate in the Federal Scholarship Tax Credit (Section 25F)

IRS News Release IR-2026-76 | IRS | Issued June 8, 2026

On June 8, 2026, the IRS announced in news release IR-2026-76 that 27 states had elected to participate in the new federal scholarship tax credit under Internal Revenue Code Section 25F, the credit the IRS calls the Federal Scholarship Tax Credit. The release explains that a taxpayer may claim the credit of up to $1,700 per return only by contributing to a Scholarship Granting Organization located in a state that has both elected to participate and submitted its list of qualified organizations, that state participation is voluntary, and that more states are expected to join.

Why this matters: For donors and schools, this is the IRS's official, regularly updated confirmation of which states have opted in, and that single fact determines whether a contribution in a given state can qualify for the credit, because a taxpayer benefits only when an eligible Scholarship Granting Organization sits on a participating state's list.