{"id":906,"date":"2026-07-14T17:52:52","date_gmt":"2026-07-14T17:52:52","guid":{"rendered":"https:\/\/pbspay.com\/news\/?p=906"},"modified":"2026-07-14T17:52:54","modified_gmt":"2026-07-14T17:52:54","slug":"federal-scholarship-tax-credit-program-gains-state-participation","status":"publish","type":"post","link":"https:\/\/pbspay.com\/news\/2026\/07\/14\/federal-scholarship-tax-credit-program-gains-state-participation\/","title":{"rendered":"Federal Scholarship Tax Credit Program Gains State Participation"},"content":{"rendered":"\n<h2 id=\"h-quick-summary\" class=\"wp-block-heading\"><strong>Quick Summary<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Beginning January 1, 2027, eligible individual taxpayers may claim a federal tax credit of up to $1,700 for qualifying cash contributions to approved Scholarship Granting Organizations in participating states.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-vivid-green-cyan-color has-alpha-channel-opacity has-vivid-green-cyan-background-color has-background\"\/>\n\n\n\n<h2 id=\"h-what-is-the-federal-scholarship-tax-credit\" class=\"wp-block-heading\">What Is the Federal Scholarship Tax Credit?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The <a href=\"https:\/\/www.irs.gov\/newsroom\/more-than-half-the-us-states-signed-up-to-participate-in-the-federal-scholarship-tax-credit-program-enacted-under-the-one-big-beautiful-bill\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-green-cyan-color\">IRS<\/mark><\/a> recently announced that 27 states have elected to participate in the new Federal Scholarship Tax Credit program. Created under the One Big Beautiful Bill, the program is designed to encourage charitable contributions that help provide educational opportunities for elementary and secondary school students.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Beginning in 2027, eligible individual taxpayers may receive a federal tax credit of up to $1,700 each year for qualified cash contributions to an approved Scholarship Granting Organization, commonly referred to as an SGO. These organizations use eligible donations to provide scholarships for qualified educational expenses.<\/p>\n\n\n\n<h2 id=\"h-how-taxpayers-can-qualify\" class=\"wp-block-heading\">How Taxpayers Can Qualify<\/h2>\n\n\n<div class=\"wp-block-image is-style-rounded\">\n<figure class=\"alignright size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1080\" height=\"1080\" src=\"https:\/\/pbspay.com\/news\/wp-content\/uploads\/2026\/07\/Scholarship-Tax-Credit-Program.png\" alt=\"\" class=\"wp-image-907\" style=\"width:255px;height:auto\"\/><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">State participation in the program is voluntary. To qualify for the credit, a taxpayer must contribute to an approved SGO in a state that has formally elected to participate and submitted its list of eligible organizations to the IRS.<\/p>\n\n\n\n<h2 id=\"h-participating-states\" class=\"wp-block-heading\">Participating States<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The 27 participating states currently include Alabama, Alaska, Arkansas, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Louisiana, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming.<\/p>\n\n\n\n<h2 id=\"h-what-happens-next\" class=\"wp-block-heading\">What Happens Next<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Additional states may choose to participate as they complete the required election and submission process. The IRS will continue updating its official list of participating states and approved Scholarship Granting Organizations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Taxpayers interested in claiming the credit should confirm that their state and selected organization meet all IRS requirements before making a contribution. They should also consult a qualified tax professional regarding their eligibility and individual tax situation.<\/p>\n\n\n\n<h2 id=\"h-how-pbs-can-help\" class=\"wp-block-heading\">How PBS Can Help<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Stay prepared for changing tax and workplace requirements. PBS helps businesses simplify payroll, benefits administration, HR compliance, and other essential workforce responsibilities. <a href=\"https:\/\/pbspay.com\/contact-us\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-green-cyan-color\">Contact PBS today<\/mark><\/a> to learn how our team can support your organization.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Quick Summary Beginning January 1, 2027, eligible individual taxpayers may claim a federal tax credit of up to $1,700 for qualifying cash contributions to approved Scholarship Granting Organizations in participating states. What Is the Federal Scholarship Tax Credit? The IRS recently announced that 27 states have elected to participate in the new Federal Scholarship Tax [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":908,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,4],"tags":[],"class_list":["post-906","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pbs","category-tax"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.0 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Federal Scholarship Tax Credit Program Gains State Participation - Payroll &amp; Benefits Solutions Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/pbspay.com\/news\/2026\/07\/14\/federal-scholarship-tax-credit-program-gains-state-participation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Federal Scholarship Tax Credit Program Gains State Participation\" \/>\n<meta property=\"og:description\" content=\"Quick Summary Beginning January 1, 2027, eligible individual taxpayers may claim a federal tax credit of up to $1,700 for qualifying cash contributions to approved Scholarship Granting Organizations in participating states. What Is the Federal Scholarship Tax Credit? 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