Federal scholarship tax credit tracker
Federal Scholarship Tax Credit: State-by-State Opt-In
32 states have opted in, 15 are undecided or awaiting legislation, and 4 have not opted in (as of November 9, 2026).
A donor can claim the federal scholarship tax credit for a cash gift made on or after January 1, 2027 only if that state has filed its election and submitted its SGO list, and only for an SGO on that list. It is a nonrefundable credit of up to $1,700 per taxpayer ($1,700 single, $3,400 married filing jointly) under 26 U.S.C. §25F. Opted-in states match the IRS list of participating states, which is as of October 22, 2026. SGOlist last verified these rows on November 9, 2026. Guide for CPAs and advisors → How the federal credit works →
On October 1, 2026, Treasury and the IRS announced the guidance (IR-2026-117). On October 2, 2026, they published temporary regulations (T.D. 10057) and proposed regulations (REG-117199-25). For 2027, a state must file its election by January 1, 2027 (11:59 p.m.) and submit its SGO list by February 15, 2027. If the state does not submit that list, no SGO in that state qualifies. Comments on the proposed regulations (REG-117199-25), and requests to speak at the hearing, are due December 1, 2026. Requests to attend are due December 10, 2026 (5 p.m. ET). The public hearing is December 15, 2026 at 10 a.m. ET.
How often this tracker is 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.
States by opt-in status
Each state's opt-in status for the federal scholarship tax credit is listed here, then shown on the map and in the tables below. The counts use those same statuses.
Last updated November 10, 2026.
32 opted in, 2 pending, 13 with no decision yet, and 4 not participating.
- Alabama: Opted In
- Alaska: Opted In
- Arizona: Not Participating
- Arkansas: Opted In
- California: No Decision Yet
- Colorado: Opted In
- Connecticut: No Decision Yet
- Delaware: No Decision Yet
- Florida: Opted In
- Georgia: Opted In
- Hawaii: No Decision Yet
- Idaho: Opted In
- Illinois: No Decision Yet
- Indiana: Opted In
- Iowa: Opted In
- Kansas: Opted In
- Kentucky: Opted In
- Louisiana: Opted In
- Maine: No Decision Yet
- Maryland: No Decision Yet
- Massachusetts: No Decision Yet
- Michigan: No Decision Yet
- Minnesota: Not Participating
- Mississippi: Opted In
- Missouri: Opted In
- Montana: Opted In
- Nebraska: Opted In
- Nevada: Opted In
- New Hampshire: Opted In
- New Jersey: Pending
- New Mexico: Opted In
- New York: Opted In
- North Carolina: Opted In
- North Dakota: Opted In
- Ohio: Opted In
- Oklahoma: Opted In
- Oregon: Not Participating
- Pennsylvania: No Decision Yet
- Rhode Island: No Decision Yet
- South Carolina: Opted In
- South Dakota: Opted In
- Tennessee: Opted In
- Texas: Opted In
- Utah: Opted In
- Vermont: Pending
- Virginia: Opted In
- Washington: No Decision Yet
- Washington D.C.: No Decision Yet
- West Virginia: Opted In
- Wisconsin: Not Participating
- Wyoming: Opted In
Select a state to jump to its status, source, and verified date. “SGOs in our directory” counts Scholarship Granting Organizations in the SGOlist directory for that state’s own program. It is not a count of SGOs approved for the federal credit.
Opted In (32)
These states are participating. Donors can claim the federal credit for a cash gift made on or after January 1, 2027 only if the state has filed its election and submitted its SGO list, and only for an SGO on that list.
| State | Status | Source | Opt-in action (date) | State SGO credit | SGOs in our directory |
|---|---|---|---|---|---|
| Alabama | Opted In | State announcementIRS participating-states list Verified October 6, 2026 | January 16, 2026 | Education Scholarship Program | 8 |
| Alaska Alaska approved its first 20 SGOs on Oct 2, 2026 (Department of Education and Early Development bulletin). Applications remain open on a rolling basis. | Opted In | State announcementIRS participating-states list Verified October 10, 2026 | January 26, 2026 | No | 20 |
| Arkansas | Opted In | State announcementIRS participating-states list Verified October 6, 2026 | January 16, 2026 | Philanthropic Investment in Arkansas Kids Program | 3 |
| Colorado | Opted In | State announcementIRS participating-states list Verified October 6, 2026 | January 29, 2026 | No | 0 |
| Florida | Opted In | State announcementIRS participating-states list Verified October 6, 2026 | January 28, 2026 | Florida Tax Credit Scholarship Program | 2 |
| Georgia | Opted In | IRS participating-states list (as of October 22, 2026) Verified October 6, 2026 | January 20, 2026 | Qualified Education Expense Tax Credit | 19 |
| Idaho The Idaho State Department of Education's Education Freedom Tax Credit page, updated October 7, 2026, includes the Idaho Application for Scholarship Granting Organizations. Beginning January 1, 2027, eligible taxpayers may receive a federal tax credit for donations made to approved Scholarship Granting Organizations. | Opted In | State announcementIdaho State Department of EducationIRS participating-states list Verified October 12, 2026 | January 20, 2026 | No | 0 |
| Indiana | Opted In | State announcementIRS participating-states list Verified October 6, 2026 | January 22, 2026 | Indiana School Scholarship Tax Credit | 8 |
| Iowa | Opted In | State announcementIRS participating-states list Verified October 6, 2026 | January 5, 2026 | Iowa School Tuition Organization Tax Credit | 12 |
| Kansas | Opted In | State announcementIRS participating-states list Verified October 6, 2026 | April 9, 2026 | Tax Credit for Low-Income Students Scholarship Program | 3 |
| Kentucky | Opted In | State announcementIRS participating-states list Verified October 6, 2026 | March 17, 2026 | No | 0 |
| Louisiana | Opted In | State announcementIRS participating-states list Verified October 6, 2026 | December 17, 2025 | Tuition Donation Credit Program | 4 |
| Mississippi | Opted In | State announcementIRS participating-states list Verified October 6, 2026 | January 19, 2026 | No | 0 |
| Missouri | Opted In | State announcementIRS participating-states list Verified October 6, 2026 | January 13, 2026 | Missouri Empowerment Scholarship Accounts | 7 |
| Montana | Opted In | State announcementIRS participating-states list Verified October 6, 2026 | January 21, 2026 | Tax Credits for Contributions to Student Scholarship Organizations | 22 |
| Nebraska | Opted In | State announcementIRS participating-states list Verified October 6, 2026 | September 29, 2025 | No | 0 |
| Nevada | Opted In | State announcementIRS participating-states list Verified October 6, 2026 | January 23, 2026 | Nevada Educational Choice Scholarship Program | 6 |
| New Hampshire | Opted In | State announcementIRS participating-states list Verified October 6, 2026 | January 29, 2026 | New Hampshire Education Tax Credit | 1 |
| New Mexico Participating, per the Governor's Nov 4, 2026 announcement; SGO certification process and dates not yet announced. The New Mexico Public Education Department will establish a process for certification of SGOs in the coming weeks. New Mexico is not yet on the IRS participating-states list (as of October 22, 2026). New Mexico must still file its election by January 1, 2027 (11:59 p.m.) and submit its SGO list by February 15, 2027. If New Mexico does not submit that list, no SGO in New Mexico qualifies. | Opted In | Governor's announcementIRS participating-states list Verified November 5, 2026 | — | No | 0 |
| New York Participating, per the Governor's Oct 9, 2026 statement; SGO list, application process, and dates not yet announced. New York is not yet on the IRS participating-states list (as of October 22, 2026). No state agency or SGO application process has been announced. New York must still file its election by January 1, 2027 (11:59 p.m.) and submit its SGO list by February 15, 2027. If New York does not submit that list, no SGO in New York qualifies. | Opted In | Governor's statementIRS participating-states list Verified October 9, 2026 | — | No | 0 |
| North Carolina | Opted In | State announcementIRS participating-states list Verified October 6, 2026 | June 3, 2026 | No | 1 |
| North Dakota | Opted In | State announcementIRS participating-states list Verified October 6, 2026 | January 26, 2026 | No | 0 |
| Ohio | Opted In | State announcementIRS participating-states list Verified October 6, 2026 | — | Scholarship Donation Credit | 80 |
| Oklahoma Gov. Stitt opted in by executive order. HB 3704, signed April 17, 2026, put participation into law and named the Oklahoma Tax Commission as the agency. The Oklahoma Tax Commission registers SGOs on Form 80002 (revised 10-2026) for the Oklahoma program, the federal list, or both. The signed paper application and all documents must be mailed and received by December 15, 2026 to take part in tax year 2027. OTC will post approved SGOs on its page. Registering for one program does not qualify an SGO for the other program's credit. | Opted In | State announcementOfficial announcementOklahoma Tax CommissionIRS participating-states list Verified October 19, 2026 | April 17, 2026 | Oklahoma Equal Opportunity Education Scholarships | 9 |
| South Carolina On October 13, 2026, Governor McMaster issued Executive Order 2026-23 directing the South Carolina Department of Revenue to assist with receiving applications from scholarship granting organizations seeking to participate in the Federal Tax Credit Program in South Carolina for Tax Year 2027. Scholarship granting organizations interested in participating may apply by emailing SGOapplication@dor.sc.gov. The release says he elected to have South Carolina participate on January 13, 2026. | Opted In | Governor's Oct 13, 2026 releaseIRS participating-states list (as of October 22, 2026) Verified October 13, 2026 | January 28, 2026 | Educational Credit for Exceptional Needs Children | 2 |
| South Dakota | Opted In | State announcementIRS participating-states list Verified October 6, 2026 | November 14, 2025 | Partners in Education Tax Credit Program | 1 |
| Tennessee | Opted In | State announcementIRS participating-states list Verified October 6, 2026 | April 14, 2026 | No | 0 |
| Texas | Opted In | State announcementIRS participating-states list Verified October 6, 2026 | December 10, 2025 | No | 0 |
| Utah | Opted In | IRS participating-states list (as of October 22, 2026) Verified October 6, 2026 | — | Carson Smith Opportunity Scholarship Program | 1 |
| Virginia | Opted In | IRS participating-states list (as of October 22, 2026) Verified October 6, 2026 | January 1, 2026 | Education Improvement Scholarships Tax Credits Program | 40 |
| West Virginia | Opted In | IRS participating-states list (as of October 22, 2026) Verified October 6, 2026 | — | No | 0 |
| Wyoming The Wyoming Department of Education is accepting applications from non-profit organizations seeking to participate as Scholarship Granting Organizations. Organizations must satisfy the requirements of federal law and applicable Wyoming administrative regulations. Apply with the Wyoming SGO Application Form (https://wde.jotform.com/262805416852056). Applications must be submitted by December 1, 2026, to receive approval for the 2027 tax year. An SGO cannot collect funds until the Governor's office has approved it. The annual SGO list will be posted beginning in January 2027. | Opted In | IRS participating-states list (as of October 22, 2026)Wyoming SGO applications Verified October 6, 2026 | — | No | 0 |
Pending (2)
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 | Opt-in action (date) | State SGO credit | SGOs in our directory |
|---|---|---|---|---|---|
| New Jersey Pending. A spokesperson for Gov. Sherrill's office said the administration is reviewing the federal guidance and examining who the program would serve (Education Week, October 14, 2026; Courier-Post, October 15, 2026). A4777, referred to the Assembly Education Committee on March 19, 2026, and S4121, referred to the Senate Education Committee on May 11, 2026, are still in committee. https://www.njleg.state.nj.us/bill-search/2026/A4777 | Pending | State announcementIRS participating-states list Verified November 9, 2026 | — | No | 0 |
| Vermont Act 164 (June 2026) sets conditions for participation; no election has been filed yet. | Pending | State announcementIRS participating-states list Verified October 6, 2026 | — | No | 0 |
No Decision Yet (13)
No election and no decision either way. The election is made each year, so these states can still opt in.
| State | Status | Source | Opt-in action (date) | State SGO credit | SGOs in our directory |
|---|---|---|---|---|---|
| California No decision from Gov. Newsom; a non-binding resolution (ACR 229) urges opting in. | No Decision Yet | State announcementIRS participating-states list Verified October 6, 2026 | — | No | 0 |
| Connecticut Gov. Lamont called opting in premature. Treasury announced the proposed rules on Oct 1, 2026 and published them in the Federal Register on Oct 2, 2026, and Connecticut has not decided yet. | No Decision Yet | IRS participating-states list (as of October 22, 2026) Verified October 6, 2026 | — | No | 0 |
| Delaware No decision from Gov. Meyer. | No Decision Yet | IRS participating-states list (as of October 22, 2026) Verified October 6, 2026 | — | No | 0 |
| Hawaii Gov. Green's office told Education Week it was reviewing the proposed regulations. The office noted that the proposed regulations "limit states' ability to establish their own administrative requirements, set priorities, or ensure nondiscrimination." It also cited state constitutional restrictions on public support for private schools and the state resources and oversight the program would require (Education Week, October 14, 2026). https://www.edweek.org/policy-politics/democratic-holdouts-still-arent-committing-to-trumps-school-choice-program/2026/10 Background only: Green's office earlier told Education Week that Hawaii would not participate (Education Week, March 4, 2026). https://www.edweek.org/policy-politics/they-said-no-to-the-federal-school-choice-program-now-3-dems-are-reconsidering/2026/03 | No Decision Yet | State announcementIRS participating-states list Verified November 9, 2026 | — | No | 0 |
| Illinois Illinois has not opted in. On October 1, 2026, the Governor's Office said it is reviewing the newly released Treasury and IRS guidance and will make a decision. Illinois is not on the IRS participating-states list (as of October 22, 2026). For 2027, Illinois must file its election by January 1, 2027 (11:59 p.m.) and submit its SGO list by February 15, 2027. If Illinois does not submit that list, no SGO in Illinois qualifies. | No Decision Yet | IRS participating-states list Verified October 6, 2026 | — | No | 0 |
| Maine No decision from Gov. Mills. | No Decision Yet | IRS participating-states list (as of October 22, 2026) Verified October 6, 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 | State announcementIRS participating-states list Verified October 6, 2026 | — | No | 0 |
| Massachusetts Treasury announced the proposed rules on Oct 1, 2026 and published them in the Federal Register on Oct 2, 2026, and Massachusetts has not decided yet. | No Decision Yet | IRS participating-states list (as of October 22, 2026) Verified October 6, 2026 | — | No | 0 |
| Michigan Treasury announced the proposed rules on Oct 1, 2026 and published them in the Federal Register on Oct 2, 2026, and Michigan has not decided yet. | No Decision Yet | State announcementIRS participating-states list Verified October 6, 2026 | — | No | 0 |
| Pennsylvania Treasury announced the proposed rules on Oct 1, 2026 and published them in the Federal Register on Oct 2, 2026, and Pennsylvania has not decided yet. State senators have proposed requiring participation. | No Decision Yet | State announcementIRS participating-states list Verified October 6, 2026 | — | Pennsylvania Educational Improvement Tax Credit | 348 |
| Rhode Island Rhode Island has not opted in. 2026 R.I. Pub. Laws ch. 093 (H7163) and ch. 117 (S2139), signed June 18, 2026, require a General Assembly bill signed by the governor before the governor can opt in or submit an SGO list. | No Decision Yet | State announcementIRS participating-states list Verified October 6, 2026 | — | Tax Credits for Contributions to Scholarship Organizations | 7 |
| Washington Treasury announced the proposed rules on Oct 1, 2026 and published them in the Federal Register on Oct 2, 2026, and Washington has not decided yet. An opt-in bill (HB 2444) was referred to committee. | No Decision Yet | State announcementIRS participating-states list Verified October 6, 2026 | — | No | 0 |
| Washington D.C. No decision from Mayor Bowser. | No Decision Yet | IRS participating-states list (as of October 22, 2026) Verified October 6, 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 | Opt-in action (date) | State SGO credit | SGOs in our directory |
|---|---|---|---|---|---|
| Arizona Gov. Hobbs vetoed opt-in bills in 2026, and the legislature has not overridden them. | Not Participating | State announcementIRS participating-states list Verified October 6, 2026 | — | STO Tax Credit Programs | 57 |
| Minnesota Gov. Walz has said Minnesota will not opt in. | Not Participating | State announcementIRS participating-states list Verified October 6, 2026 | — | No | 0 |
| Oregon Gov. Kotek announced on June 12, 2026 that Oregon will not participate. On October 2, 2026, she said she has no plans to change her position. | Not Participating | State announcementIRS participating-states list Verified October 6, 2026 | — | No | 0 |
| Wisconsin Gov. Evers vetoed the opt-in bill (AB 602) on March 30, 2026, and the veto was sustained. | Not Participating | State announcementIRS participating-states list Verified October 6, 2026 | — | No | 0 |
Change log
- November 4, 2026. New Mexico is participating beginning in 2027, per Governor Lujan Grisham's November 4, 2026 announcement. Scholarships can support students in public and private schools. Counts are 32 opted in, 2 pending (New Jersey and Vermont), 13 no decision yet, and 4 not participating. The announcement is not a filed election. The New Mexico Public Education Department will establish a process for certification of SGOs in the coming weeks. New Mexico is not yet on the IRS participating-states list (as of October 22, 2026). New Mexico must still file its election by January 1, 2027 (11:59 p.m.) and submit its SGO list by February 15, 2027.
- October 22, 2026. The IRS published the participating-states roster on its own page, as of October 22, 2026. The roster lists the same 30 states. New York stays opted in. Illinois stays with no decision. Each state official source stays beside the roster link, and the main IRS FSTC page stays the general program source.
- October 19, 2026. Gov. Stitt opted Oklahoma in by executive order. HB 3704, signed April 17, 2026, put participation into law and named the Oklahoma Tax Commission as the agency. Form 80002 (revised 10-2026) covers the Oklahoma program, the federal list, or both. The signed paper application and all documents must be mailed and received by December 15, 2026 to take part in tax year 2027. Oklahoma stays opted in. The HB 3704 bill page remains the stored source. The House announcement, the Oklahoma Tax Commission SGO page, and the IRS participating-states list are listed beside it.
- October 13, 2026. On October 13, 2026, Governor McMaster issued Executive Order 2026-23 directing the South Carolina Department of Revenue to assist with receiving applications from scholarship granting organizations seeking to participate in the Federal Tax Credit Program for Tax Year 2027. Scholarship granting organizations interested in participating may apply by emailing SGOapplication@dor.sc.gov. The release says he elected to have South Carolina participate on January 13, 2026. South Carolina stays opted in. The IRS participating-states list remains the stored source. The governor's release is listed beside that source.
- October 12, 2026. Idaho's State Department of Education updated its Education Freedom Tax Credit page on October 7, 2026. The page includes the Idaho Application for Scholarship Granting Organizations. Beginning January 1, 2027, eligible taxpayers may receive a federal tax credit for donations made to approved Scholarship Granting Organizations. Idaho stays opted in. House Bill 731 remains the stored source. The department page is listed beside that source and beside the IRS participating-states list.
- October 9, 2026. New York is participating, per Governor Hochul's October 9, 2026 statement. Counts are 31 opted in, 2 pending (New Jersey and Vermont), 14 no decision yet, and 4 not participating. The statement is not a filed election. New York is not yet on the IRS participating-states list (as of September 14, 2026). No state agency or SGO application process has been announced. New York must still file its election by January 1, 2027 (11:59 p.m.) and submit its SGO list by February 15, 2027.
- October 6, 2026. Re-verified all states against the IRS list and official sources; no status changes. Updated notes after Treasury announced the proposed rules on Oct 1, 2026 and published them in the Federal Register on Oct 2, 2026.
Recently verified
- Hawaii: No Decision Yet · verified November 9, 2026
- New Jersey: Pending · verified November 9, 2026
- New Mexico: Opted In · verified November 5, 2026
- Oklahoma: Opted In · verified October 19, 2026
- South Carolina: Opted In · verified October 13, 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 a cash gift made on or after January 1, 2027 to a Scholarship Granting Organization on a participating state's list, the credit is up to $1,700 per taxpayer ($1,700 single, $3,400 married filing jointly). Unused credit can carry forward up to five years.
- Which states have opted in?
- 32 states have opted in as of November 9, 2026. The state-by-state list on this page names every state and its status, with the source for each row.
- How do I claim the federal scholarship tax credit?
- Claim it on your federal return for a cash gift made on or after January 1, 2027 to a Scholarship Granting Organization on a participating state's list. The state has to have filed its election and submitted its SGO list, and the organization has to be on that list. The credit is up to $1,700 per taxpayer ($1,700 single, $3,400 married filing jointly). The gift cannot be earmarked for a particular student. This is not tax advice; confirm your own situation with a tax advisor.
- What are the credit amounts?
- The federal scholarship tax credit is up to $1,700 per taxpayer ($1,700 single, $3,400 married filing jointly). It applies to cash gifts made on or after January 1, 2027.
- How does a state scholarship tax credit change the federal credit?
- The federal credit is reduced by any state tax credit claimed for the same contribution (26 U.S.C. §25F(b)(2)). A state credit and the federal credit are not both available in full for the same gift. 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, “Federal Scholarship Tax Credit: State-by-State Opt-In,” https://sgolist.com/education-freedom-tax-credit, data as of November 9, 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.