Treasury Department Releases Guidance for Federal K-12 Scholarship Tax Credit

The U.S. Department of the Treasury has issued new guidance for states, scholarship-granting organizations, and taxpayers regarding the federal Education Freedom Tax Credit program. Established in 2025, this program allows a federal tax credit of up to $1,700 for donations to organizations funding K-12 scholarships, primarily for private schools. Thirty states have already committed to participating in the program.