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IRS Requests Public Comments on New Education Tax Credit

  • Writer: Viktoriya Barsukova, EA, MBA
    Viktoriya Barsukova, EA, MBA
  • 2 days ago
  • 1 min read

The IRS has released Notice 2025-70 and is asking the public for feedback as it develops regulations for a new federal tax credit under §25F. This credit is designed to support organizations that provide scholarships for elementary and secondary school students.


What the New Credit Provides

Starting in 2027, taxpayers may be able to claim a nonrefundable credit of up to $1,700 for qualified cash contributions to approved scholarship-granting organizations (SGOs).

To qualify:

• The donor must be a U.S. citizen or resident.

• The organization must meet strict federal requirements, including tax-exempt status and separate accounting for all contributions.

• Scholarships must be awarded only to eligible students.


Key Issues the IRS Is Reviewing

The IRS is seeking public comments on several implementation topics, including:

• How states will certify eligible SGOs

• Standards for determining student eligibility

• Required record-keeping for donors and organizations

• How this federal credit will coordinate with any state-level education tax credits


What This Means for Taxpayers

Once finalized, §25F may offer a new way for individuals to support school-choice programs while receiving a federal tax benefit. More details will be released as regulations are developed.


IRS Requests Public Comments on New Education Tax Credit

 
 
 

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