The IRS news release dated Oct. 1, 2026, reports that the Treasury Department and IRS issued proposed regulations to implement a new federal scholarship tax credit under section 25F. The release calls it the Education Freedom Tax Credit and describes it as the first federal tax credit supporting private contributions for K-12 scholarships. It also says Treasury and the IRS issued companion temporary regulations establishing procedures for states and Scholarship Granting Organizations (SGOs) to prepare for the credit’s launch on Jan. 1, 2027. Under the proposal described in the release, the credit would begin in 2027 and encourage private contributions to participating SGOs. Individual taxpayers may claim a nonrefundable federal income tax credit of up to $1,700 for qualified cash contributions to eligible SGOs. Married taxpayers filing jointly may claim a combined credit of up to $3,400. The supplied excerpt ends before it gives additional implementation details, so those details should not be inferred from the summary. The release says 30 states have already opted in and quotes Treasury Secretary Scott Bessent encouraging all 50 states to participate. It also quotes Education Secretary Linda McMahon describing the measure as an expansion of school choice, and IRS Chief Executive Officer Frank J. Bisignano saying the rules are intended to provide states, SGOs and taxpayers with clarity as they prepare for the new credit. The news item presents the regulations as advancing the administration’s education priorities. Because the supplied source text is incomplete and ends mid-sentence, readers should review the full IRS release and the eventual regulations before relying on specific filing or contribution procedures. Source: https://www.irs.gov/newsroom/the-trump-administration-advances-the-establishment-of-americas-first-nationwide-school-choice-program