Treasury and IRS Propose Rules for New Federal School Choice Tax Credit

The U.S. Department of the Treasury and IRS have issued proposed regulations for the new Federal Scholarship Tax Credit under section 25F, also known as the Education Freedom Tax Credit. This marks the first federal tax credit supporting private K-12 scholarships, allowing taxpayers to claim up to $1,700 annually, or $3,400 for married couples. The credit, set to launch January 1, 2027, aims to expand educational freedom and parental rights.