IRS Announces 27 States Have Opted Into New Federal Scholarship Tax Credit Program

IRS Commissioner Frank J. Bisignano announced that 27 states have opted into the new Federal Scholarship Tax Credit program, allowing eligible taxpayers to claim up to a $1,700 credit for qualifying scholarship donations. Mehaniq/Shutterstock

The Internal Revenue Service announced that 27 states have elected to participate in the Federal Scholarship Tax Credit (FSTC) program, a new federal initiative that allows eligible taxpayers to claim a tax credit for contributions made to qualifying scholarship organizations.

“It’s encouraging to see that 27 states have already signed up to participate in this program that promotes and supports elementary and secondary education,” said IRS Chief Executive Officer Frank J. Bisignano. “We are hopeful that additional states will decide to participate.”