New Federal Education Freedom Tax Credit for K-12 to Launch in 2027

A new federal Education Freedom Tax Credit, part of the One Big Beautiful Bill/Working Families Tax Cuts Act signed in July 2025, is set to launch on January 1, 2027. The U.S. Treasury Department and IRS released proposed regulations on October 1, 2026, for the credit, which provides up to $1,700 per individual for qualified cash contributions to Scholarship Granting Organizations for K-12 education expenses.