Treasury Wrote the Rules for a Nationwide School-Choice Credit
Treasury and the IRS issued proposed rules, plus temporary procedures, for the Education Freedom Tax Credit on Thursday. Eligible taxpayers can claim up to $1,700 a year — $3,400 for a married couple filing jointly — for cash gifts to scholarship organizations. Contributions count starting January 1, 2027. Thirty states have already opted in.
The useful part is the constraint. Participating states may not add extra limits on which schools scholarships can pay, or which expenses they can cover. They also may not use certification to shut out scholarship groups that already qualify.
Treasury's estimate: about 96 percent of children in participating states would be eligible. By 2030 the credit could fund as many as 2.2 million scholarships a year.
This is rules, not checks. The statute is from 2025. These regulations let states and scholarship groups get ready. No family has a scholarship in hand yet.
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