U.S. Treasury and IRS release proposed regulations for 2027 launch of federal Education Freedom Tax Credit

The U.S. Treasury Department and Internal Revenue Service have released proposed regulations for the federal Education Freedom Tax Credit, set to launch on January 1, 2027. This credit provides up to $1,700 per individual (or $3,400 for married couples) for contributions to Scholarship Granting Organizations, which can fund K-12 education expenses including tuition, tutoring, and special education services. The credit is estimated to benefit households with incomes up to 300% of the area's median gross income, potentially qualifying 95% of American children.