The U.S. Treasury Department and Internal Revenue Service issued proposed regulations on October 1 for the federal tax credit under Section 25F for cash contributions to qualifying scholarship organizations. Individual taxpayers could claim up to $1,700 a year; married couples filing jointly could claim up to $3,400 combined. The program is scheduled to begin on January 1, 2027.

The proposed rules also address eligibility and safeguards against abuse. The temporary regulations set implementation procedures for state elections, organization certification, electronic registration, donor acknowledgments and contribution reporting. Both packages support preparations for the 2027 start; the proposed rules remain subject to federal rulemaking.