Jan. 2025
Colorado Governor Polis has opted Colorado into the Federal Tax Credit Scholarship Program. The program is planning to launch on January 1, 2027.
Timeline of Events
- July 4, 2025 | One Big Beautiful Bill Act signed
- Late 2025 | U.S. Department of the Treasury (IRS): Rulemaking began. On November 26, 2025, the IRS issued a request for public comment on the implementation of the new $1,700 federal tax credit for contributions to Scholarship Granting Organizations (SGOs). The initial comment period closed on December 26, 2025.
- U.S. Department of Education: Rulemaking committees (such as the RISE and AHEAD committees) began meeting in late 2025 to develop regulations for various education provisions in the law. Final regulations from these committees are scheduled to become effective by July 1, 2026.
- December 12, 2025 | State Opt-In Process: The IRS formally launched the process for states to opt into the program. States may begin submitting participation forms on or after January 1, 2026.
- December 26, 2025 | The initial public comment period for the Federal Tax Credit Scholarship Program rulemaking ended.
- January 1, 2026 | State Opt-In Window: states may begin submitting Form 15714 to make an “Advance Election” to participate in the program for the 2027 tax year.
- January 2026 | The U.S. Department of the Treasury and the IRS are now moving into the next phases of rulemaking in 2026 to prepare for the program’s official launch on January 1, 2027. Key updates for 2026 include:
- Draft Regulations: Following the initial comment period, the Treasury Department is expected to issue draft rules and regulations in early 2026.
- Second Comment Period: Once draft rules are released, the public will have another opportunity to provide feedback before regulations are finalized later in the year.
- Program Readiness: The entire operational framework is slated to be built throughout 2026. Individual taxpayers can begin contributing to qualified Scholarship Granting Organizations (SGOs) in late 2026 to claim credits for the 2027 tax year.
- Program Effective Date: While rulemaking and state elections are occurring now, the federal scholarship tax credit is not available to taxpayers until January 1, 2027.
Articles
- 4 Questions About the New Federal Tax Credit Scholarship
- 10 things to know about Trump’s new school voucher program
- IRS, Treasury Start Process of Implementing New Federal School Choice Program
- NCPE OPPOSES THE “EDUCATIONAL OPPORTUNITIES ACT”
- NSBA Urges Treasury and IRS to Preserve State Authority and Protect Public School Students in Implementation of New Federal Tax Credit
- Public Loss Private Gain: How School Voucher Tax Shelters Undermine Public Education
- The New Scholarship Tax Credit: Potential Impacts on the Landscape of Federal K-12 Funding
- Treasury takes first step in rule-making process on Federal Educational Tax Scholarship Program – afterschool field is encouraged to weigh in
- Why Colorado’s governor says Democrats should embrace the GOP’s ‘free money’
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