The proposed rules would support scholarships for tuition, tutoring and other K–12 education expenses beginning in 2027.
The Treasury Department and IRS have released proposed regulations for a federal tax credit supporting donations to organizations that provide K–12 scholarships.
Beginning January 1, 2027, eligible taxpayers could claim a nonrefundable credit of up to $1,700 for qualifying cash contributions. Married couples filing jointly could claim up to $3,400.
Scholarship funds could cover private-school tuition, tutoring, special-needs services, books, supplies and other qualifying education expenses.
States must elect to participate and identify eligible scholarship organizations. Treasury Secretary Scott Bessent said 30 states have opted in.
The administration says the program will expand parental choice. Under its proposed eligibility rules, Treasury estimates approximately 96% of children in participating states could qualify, although eligibility would not guarantee a scholarship.
The proposal also establishes reporting, verification and audit requirements intended to protect scholarship funds from fraud.
The tax credit goes to qualifying donors; families would apply for assistance through participating scholarship organizations. The proposed regulations could change before they become final.
