IRS Issues Guidance for States to Opt Into Education Credit

The Treasury Department and IRS released guidance for states who want to participate in a new tax credit for education scholarships.

Donors to certain scholarship granting organizations will be eligible for a new tax break that’s meant to expand access to private schools. States are required provide a list to the IRS of the organizations that meet the requirements in order for the donations to qualify for the credit.

Revenue Procedure 2026-6 released Friday said the states can make an advance election and may choose to participate for 2027 before it provides the IRS with a list of the SGOs ...