Federal scholarship tax credit tracker
Education Freedom Tax Credit: Which States Have Opted In
30 states have opted in, 17 are undecided or awaiting legislation, and 4 have not opted in (as of September 25, 2026).
The federal scholarship tax credit starts with gifts made on or after January 1, 2027. It is a nonrefundable credit of up to $1,700 per taxpayer per year for cash gifts to Scholarship Granting Organizations on a participating state's list (26 U.S.C. §25F). Opted-in states match the IRS list of participating states. Guide for CPAs and advisors → How the federal credit works →
States by opt-in status
Select a state to jump to its status, source, and verified date.
Opted In (30)
These states have elected to participate. Donors can claim the federal credit for gifts to eligible SGOs in these states starting January 1, 2027.
| State | Status | Source | Opted in | State SGO credit | SGOs listed |
|---|---|---|---|---|---|
| Alabama | Opted In | governor.alabama.gov Verified September 25, 2026 | January 16, 2026 | Education Scholarship Program | 9 |
| Alaska | Opted In | gov.alaska.gov Verified September 25, 2026 | January 26, 2026 | No | 0 |
| Arkansas | Opted In | governor.arkansas.gov Verified September 25, 2026 | January 16, 2026 | Philanthropic Investment in Arkansas Kids Program | 2 |
| Colorado | Opted In | tax.colorado.gov Verified September 25, 2026 | January 29, 2026 | No | 0 |
| Florida | Opted In | flgov.com Verified September 25, 2026 | January 28, 2026 | Florida Tax Credit Scholarship Program | 2 |
| Georgia | Opted In | irs.gov Verified September 25, 2026 | January 20, 2026 | Qualified Education Expense Tax Credit | 19 |
| Idaho | Opted In | legislature.idaho.gov Verified September 25, 2026 | January 20, 2026 | No | 0 |
| Indiana | Opted In | events.in.gov Verified September 25, 2026 | January 22, 2026 | Indiana School Scholarship Tax Credit | 8 |
| Iowa | Opted In | governor.iowa.gov Verified September 25, 2026 | January 5, 2026 | Iowa School Tuition Organization Tax Credit | 12 |
| Kansas | Opted In | sos.ks.gov Verified September 25, 2026 | April 9, 2026 | Tax Credit for Low-Income Students Scholarship Program | 3 |
| Kentucky | Opted In | apps.legislature.ky.gov Verified September 25, 2026 | March 17, 2026 | No | 0 |
| Louisiana | Opted In | doe.louisiana.gov Verified September 25, 2026 | December 17, 2025 | Tuition Donation Credit Program | 4 |
| Mississippi | Opted In | governorreeves.ms.gov Verified September 25, 2026 | January 19, 2026 | No | 0 |
| Missouri | Opted In | content.govdelivery.com Verified September 25, 2026 | January 13, 2026 | Missouri Empowerment Scholarship Accounts | 7 |
| Montana | Opted In | news.mt.gov Verified September 25, 2026 | January 21, 2026 | Tax Credits for Contributions to Student Scholarship Organizations | 22 |
| Nebraska | Opted In | govdocs.nebraska.gov Verified September 25, 2026 | September 29, 2025 | No | 0 |
| Nevada | Opted In | gov.nv.gov Verified September 25, 2026 | January 23, 2026 | Nevada Educational Choice Scholarship Program | 6 |
| New Hampshire | Opted In | education.nh.gov Verified September 25, 2026 | January 29, 2026 | New Hampshire Education Tax Credit | 1 |
| North Carolina | Opted In | ncleg.gov Verified September 25, 2026 | June 3, 2026 | No | 0 |
| North Dakota | Opted In | governor.nd.gov Verified September 25, 2026 | January 26, 2026 | No | 0 |
| Ohio | Opted In | charitable.ohioago.gov Verified September 25, 2026 | — | Scholarship Donation Credit | 80 |
| Oklahoma | Opted In | oklegislature.gov Verified September 25, 2026 | April 17, 2026 | Oklahoma Equal Opportunity Education Scholarships | 8 |
| South Carolina | Opted In | irs.gov Verified September 25, 2026 | January 28, 2026 | Educational Credit for Exceptional Needs Children | 1 |
| South Dakota | Opted In | news.sd.gov Verified September 25, 2026 | November 14, 2025 | Partners in Education Tax Credit Program | 1 |
| Tennessee | Opted In | wapp.capitol.tn.gov Verified September 25, 2026 | April 14, 2026 | No | 0 |
| Texas | Opted In | gov.texas.gov Verified September 25, 2026 | December 10, 2025 | No | 0 |
| Utah | Opted In | irs.gov Verified September 25, 2026 | — | Carson Smith Opportunity Scholarship Program | 1 |
| Virginia | Opted In | irs.gov Verified September 25, 2026 | January 1, 2026 | Educational Improvement Scholarships Tax Credits Program | 38 |
| West Virginia | Opted In | irs.gov Verified September 25, 2026 | — | No | 0 |
| Wyoming | Opted In | irs.gov Verified September 25, 2026 | — | No | 0 |
Pending (3)
No election has been filed yet, but a formal step toward opting in is under way: an announced intent, a pending bill, or an enacted framework awaiting an election.
| State | Status | Source | Opted in | State SGO credit | SGOs listed |
|---|---|---|---|---|---|
| New Jersey Gov. Sherrill will evaluate the program once federal rules are final; an opt-in bill (S4121) is pending. | Pending | pub.njleg.gov Verified September 25, 2026 | — | No | 0 |
| New York Gov. Hochul announced her intent to opt in in May 2026; no election has been filed yet. | Pending | irs.gov Verified September 25, 2026 | — | No | 0 |
| Vermont Act 164 (June 2026) sets conditions for participation; no election has been filed yet. | Pending | legislature.vermont.gov Verified September 25, 2026 | — | No | 0 |
No Decision Yet (14)
No election and no decision either way. The election is made each year, so these states can still opt in.
| State | Status | Source | Opted in | State SGO credit | SGOs listed |
|---|---|---|---|---|---|
| California No decision from Gov. Newsom; a non-binding resolution (ACR 229) urges opting in. | No Decision Yet | leginfo.legislature.ca.gov Verified September 25, 2026 | — | No | 0 |
| Connecticut Gov. Lamont called opting in premature and is waiting for federal guidance. | No Decision Yet | irs.gov Verified September 25, 2026 | — | No | 0 |
| Delaware No decision from Gov. Meyer. | No Decision Yet | irs.gov Verified September 25, 2026 | — | No | 0 |
| Hawaii Gov. Green said in 2025 that Hawaii would not participate; in August 2026 his office said it is waiting for federal rules. | No Decision Yet | capitol.hawaii.gov Verified September 25, 2026 | — | No | 0 |
| Illinois Gov. Pritzker is reported to be awaiting federal rules; opt-in bills have not advanced. | No Decision Yet | irs.gov Verified September 25, 2026 | — | No | 0 |
| Maine No decision from Gov. Mills. | No Decision Yet | irs.gov Verified September 25, 2026 | — | No | 0 |
| Maryland No decision; Gov. Moore has criticized the program. An opt-in bill (HB 455 / SB 329) was introduced in 2026. | No Decision Yet | mgaleg.maryland.gov Verified September 25, 2026 | — | No | 0 |
| Massachusetts Gov. Healey is waiting for federal guidance before deciding. | No Decision Yet | irs.gov Verified September 25, 2026 | — | No | 0 |
| Michigan Gov. Whitmer is waiting for full Treasury guidance before deciding. | No Decision Yet | michigan.gov Verified September 25, 2026 | — | No | 0 |
| New Mexico The governor's office said in 2025 that New Mexico would not participate; in 2026 it said it is seeking more federal guidance before a final decision. | No Decision Yet | web.ped.nm.gov Verified September 25, 2026 | — | No | 0 |
| Pennsylvania Gov. Shapiro's office is awaiting federal guidance; state senators have proposed requiring participation. | No Decision Yet | palegis.us Verified September 25, 2026 | — | Pennsylvania Educational Improvement Tax Credit | 349 |
| Rhode Island A 2026 law requires legislative approval before Rhode Island can opt in; Gov. McKee has not decided. | No Decision Yet | webserver.rilegislature.gov Verified September 25, 2026 | — | Tax Credits for Contributions to Scholarship Organizations | 7 |
| Washington Gov. Ferguson is waiting for final federal rules; an opt-in bill (HB 2444) was referred to committee. | No Decision Yet | app.leg.wa.gov Verified September 25, 2026 | — | No | 0 |
| Washington D.C. No decision from Mayor Bowser. | No Decision Yet | irs.gov Verified September 25, 2026 | — | No | 0 |
Not Participating (4)
The governor or designated authority has refused to opt in or vetoed an opt-in bill, and no election has been filed. The election is annual, so this can change.
| State | Status | Source | Opted in | State SGO credit | SGOs listed |
|---|---|---|---|---|---|
| Arizona Gov. Hobbs vetoed opt-in bills in 2026, and the legislature has not overridden them. | Not Participating | azleg.gov Verified September 25, 2026 | — | STO Tax Credit Programs | 56 |
| Minnesota Gov. Walz has said Minnesota will not opt in. | Not Participating | mn.gov Verified September 25, 2026 | — | No | 0 |
| Oregon Gov. Kotek announced on June 12, 2026 that Oregon will not participate. | Not Participating | oregon.gov Verified September 25, 2026 | — | No | 0 |
| Wisconsin Gov. Evers vetoed the opt-in bill (AB 602) on March 30, 2026, and the veto was sustained. | Not Participating | docs.legis.wisconsin.gov Verified September 25, 2026 | — | No | 0 |
Recently verified
- Alabama: Opted In · verified September 25, 2026
- Alaska: Opted In · verified September 25, 2026
- Arizona: Not Participating · verified September 25, 2026
- Arkansas: Opted In · verified September 25, 2026
- California: No Decision Yet · verified September 25, 2026
Frequently asked questions
- What is the Education Freedom Tax Credit?
- It is the federal scholarship tax credit in 26 U.S.C. §25F, created by the One Big Beautiful Bill Act, signed July 4, 2025. For cash gifts made on or after January 1, 2027 to a Scholarship Granting Organization (SGO) on a participating state's list, taxpayers can claim a nonrefundable federal credit of up to $1,700 per year. Unused credit can carry forward up to five years.
- Which states have opted in?
- 30 states have opted in as of September 25, 2026. The table on this page lists every state with its status and the source for it.
- How does it interact with my state tax credit?
- The federal credit is separate from state SGO tax credit programs, but it is reduced by any state tax credit you claim for the same contribution (§25F(b)(2)), and no federal charitable deduction is allowed for the credited amount. Check your own situation with a tax advisor.
- How often is this tracker updated?
- Opted-in states are checked against the IRS list of participating states, and every status against the official governor, legislature, or state agency source shown in its row, with the date it was last verified.
Citing this tracker
SGOlist, “Education Freedom Tax Credit: Which States Have Opted In,” https://sgolist.com/education-freedom-tax-credit, data as of September 25, 2026.
This tracker is for information only and is not tax advice. Statuses can change; confirm with the state and a tax advisor before relying on them.
For Donors
Find an SGO in a participating state
Browse Scholarship Granting Organizations by state and see how state and federal credits apply to your donation.