The IRS announced on Monday that 27 states have formally opted to take part in the Federal Scholarship Tax Credit (FSTC) program enacted under the One Big Beautiful Bill.
FSTC allows eligible individual taxpayers to claim tax credits for up to $1,700 in certain cash contributions they make to Scholarship Granting Organizations (SGO). SGO charities grant scholarships to help students pay for elementary and secondary education expenses.
“For taxpayers to claim the tax credit of up to $1,700, they must contribute to an SGO located in a state that elects to participate in the FSTC program and submits a list of qualified SGOs,” the IRS said in a statement….