Beginning on Jan. 1, 2027, eligible individual taxpayers can claim nonrefundable federal tax credits for cash contributions to qualified Scholarship Granting Organizations (SGOs) that serve K-12 students from low- and middle-income families. The credit was introduced under the One Big Beautiful Bill Act. The IRS has issued guidance (Rev. Proc. 2026-6) that allows states to make an advance election to participate. The credit is limited to $1,700 per year. To claim the credit, taxpayers must make cash contributions to SGOs that appear on a participating state’s list for the applicable calendar year. For more information: https://bit.ly/3XRvFHu
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