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Issue Number: IR-2025-121Inside This IssueTreasury, IRS allow States to make an Advance Election to participate in the new federal tax credit for individual contributions to Scholarship Granting Organizations under the One, Big, Beautiful Bill IR-2025-121, Dec. 12, 2025 WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued Revenue Procedure 2026-6 allowing States, including the District of Columbia, to make an Advance Election to participate in a new tax credit for calendar year 2027. This new credit, established under the One, Big, Beautiful Bill, is for contributions to Scholarship Granting Organizations that serve elementary and secondary school students from low- and middle-income families. Beginning Jan. 1, 2027, individual taxpayers may claim a nonrefundable federal tax credit for cash contributions to SGOs providing scholarships for elementary and secondary education expenses. The credit allowed to any taxpayer is limited to $1,700. However, for contributions to an SGO to be eligible for this credit, the SGO must be listed on a State list of one or more covered states for the applicable calendar year. A covered state is defined as one of the States, or the District of Columbia, that, for a calendar year, voluntarily elects to participate in the credit and identifies SGOs in the State. Revenue Procedure 2026-6 provides that a State may choose to be a covered State for calendar year 2027 before it provides the IRS with a list of the SGOs located in the State, allowing SGOs additional time to prepare for the commencement of this new credit in 2027. To make this Advance Election, States must submit Form 15714, Advance Election to Participate Under Section 25F for 2027, on or after Jan. 1, 2026, and before the final date on which the State is permitted to submit the State SGO list. Form 15714 and its Instructions are now available on IRS.gov. The deadline and procedure for perfecting the Advance Election by submitting the State SGO list will be provided in future guidance. Future guidance also will address how to make an election to participate in the new tax credit for calendar year 2027 at the same time the State submits the State SGO list, and how to make elections, including Advance Elections, to participate in the credit for subsequent calendar years. Notice 2025-70 provides additional guidance and a request for comments regarding State SGO lists and certifications necessary for State elections. For more information, please see the One, Big, Beautiful Bill provisions page on IRS.gov.
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