US States Urged to Prepare for Federal Education Tax Credit Deadline

US states must finalize lists of approved Scholarship Granting Organizations (SGOs) for the IRS by February 15, 2027, ahead of the federal Education Freedom Tax Credit (EFTC) taking effect on January 1, 2027. This program could provide $26 billion for educational expenses. Concerns exist that states may not be ready, potentially hindering organizations from qualifying as SGOs for the upcoming year.