The Department of the Treasury and the IRS have proposed regulations to implement a new educational scholarship tax credit program that expands school choice options for parents and students.
The regulations pertain to the Federal Scholarship Tax Credit (FSTC) program, enacted under the One Big Beautiful Bill Act. FSTC allows individual taxpayers to claim tax credits for certain cash contributions they make to Scholarship Granting Organizations (SGOs). SGOs are entities providing scholarships to cover elementary and secondary school expenses.
The scholarships disbursed by the SGOs can be used by recipients for a wide range of education expenses, including tuition for private school, academic tutoring, books, special-needs services, supplies, computers, and other expenses related to the enrollment or attendance of a student, the IRS said in an Oct. 1 statement. …