Enact the Educational Choice for Children Act scholarship tax credit

What has happened

1. Oct 2, 2026 Done

   Treasury and the IRS published the first regulations under 26 U.S.C. 25F, on the same day. Temporary regulations set out the requirements and procedures for states that elect to participate and for organizations that one or more participating states have certified as scholarship granting organizations. A proposed rule covers the credit itself, for contributors, electing states and certified organizations, and gives notice of a public hearing. Both apply to contributions made in 2027 and later taxable years. The credit was already law, so this is implementation and does not change the Status. Both texts were opened at federalregister.gov in review on 2026-10-04. The temporary regulations take effect 2026-12-01. Comments on the proposed rule are due the same day, and the hearing is set for 2026-12-15 (REG-117199-25).

   • Treasury/IRS temporary regulations: Federal Scholarship Tax Credit (state elections and certified scholarship granting organizations)

     Primary Executive branch Oct 2, 2026

   • Treasury/IRS proposed regulations: Federal Scholarship Tax Credit (with notice of public hearing)

     Primary Executive branch Oct 2, 2026

2. Jan 27, 2026 Done

   Implementation under way: Education and Treasury issued a joint fact sheet on what the departments call the Education Freedom Tax Credit, and 23 states had elected to participate.

   • ED and Treasury joint fact sheet: the Education Freedom Tax Credit (23 states opted in)

     Primary Executive branch Jan 27, 2026

3. Jul 4, 2025 Done

   Congress enacted the federal scholarship tax credit. Section 70411 of Public Law 119-21 adds 26 U.S.C. 25F, a dollar-for-dollar credit against federal income tax for cash contributions to non-profit scholarship granting organizations, plus 26 U.S.C. 139K excluding the resulting scholarships from a recipient's gross income — the Educational Choice for Children Act's mechanism, enacted inside the reconciliation bill rather than as the standalone H.R. 833 / S. 292. The enacted version is smaller than the bill the Quote names: the credit is capped at $1,700 per taxpayer, a state must voluntarily elect to participate and list its scholarship granting organizations, eligibility stops at 300 percent of area median gross income, and the credit applies only to taxable years ending after 2026-12-31.

   • Public Law 119-21, sec. 70411 — Tax Credit for Contributions of Individuals to Scholarship Granting Organizations (new 26 U.S.C. 25F and 139K)

     Primary Congress Jul 4, 2025