The law behind ECF, in its own words.
Everything ECF does rests on one section of the Internal Revenue Code: § 25F, added by § 70411 of Public Law 119-21 on July 4, 2025. This page collects the sources so you can read them without going through us, with short summaries from ECF. Read each linked source for its full text.
Where things stand
The credit takes effect January 1, 2027. A state must elect to participate and give the IRS a list of its scholarship granting organizations before gifts to those organizations can qualify. Donors may live in any state.
Proposed regulations arrived October 1, 2026. Treasury and the IRS released proposed regulations (REG-117199-25) and companion temporary regulations (T.D. 10057) under § 25F. They confirm a credit of up to $1,700 per individual; up to $3,400 for a married couple filing jointly if each spouse gives $1,700, under proposed rules, nonrefundable, limited to the donor’s own federal tax liability, with unused credit carried forward up to five years. Taxpayers, states and SGOs may rely on the proposed regulations for qualified contributions made on or after January 1, 2027, before final regulations are issued. Comments are due December 1, 2026. No date has been set for final rules.
Tennessee has made that election. The IRS list of participating states for 2027, current as of July 24, 2026, includes Tennessee. The state's SGO list is a separate, later step. ECF is a 501(c)(3) public charity and a Tennessee SGO in formation. It intends to apply when the state's formal application opens and is not on the list yet. See the IRS list.
The statute
§ 25F is short. If you read one thing, read subsection (c), which defines eligible student, qualified contribution, and scholarship granting organization.
I.R.C. § 25F, full text →
Qualified Elementary and Secondary Education Scholarships. Full text with cross-references to related Code sections.
Bloomberg TaxCode Sec. 25F →
A second full text, useful for the subsections on disqualified persons, denial of double benefit under § 170, and the five-year carryforward.
Tax NotesTreasury and IRS guidance
Proposed and temporary regulations were released October 1, 2026. Together with one notice requesting comments and one revenue procedure covering the state election, they are the guidance that exists today. Final regulations have not been issued, and anything the proposed rules leave open is still unsettled.
Proposed regulations, REG-117199-25 →
The proposed rule under § 25F: credit amounts, the $3,400 joint figure (each spouse giving $1,700), carryforward, and the requirements an SGO must meet. Federal Register document 2026-20277 (91 FR 62818), published October 2, 2026. Comments due December 1, 2026.
Federal Register · October 2, 2026Treasury press release, October 1, 2026 →
The announcement of the proposed regulations (REG-117199-25) and the temporary regulations (T.D. 10057), which cover state elections, SGO certification, electronic registration through new IRS portals, donor acknowledgments and reporting.
U.S. TreasuryTreasury and Education Department FAQ →
Plain-language questions and answers released with the proposed rules, including the reliance language for contributions made on or after January 1, 2027.
Treasury · PDFFederal Scholarship Tax Credit (FSTC) →
The IRS landing page for the credit, including the running list of states that have elected to participate for 2027. This is the page to check for changes.
IRS · updated July 27, 2026Rev. Proc. 2026-6 →
The exclusive procedure for a state to make an Advance Election to become a covered state for 2027, using Form 15714. An Advance Election must later be perfected by submitting the state's SGO list; that deadline is still to come in future guidance.
IRS · PDFNotice 2025-70 →
Treasury and the IRS request comments on issues arising under § 25F, emphasizing annual certification by a state and the SGO requirements. The clearest available signal of which questions the regulations will address.
IRS · PDFIRS release on the Advance Election →
The plain-language announcement accompanying Rev. Proc. 2026-6, with links to Form 15714 and its instructions.
IRS Newsroom · IR-2025-121Internal Revenue Bulletin 2026-2 →
Rev. Proc. 2026-6 as officially published, January 5, 2026. Cite this version in formal work.
IRS · PDFOutside commentary
Accounting and law firms have published their own readings of § 25F. These are their analyses, not ECF's, and we link them because they are more detailed than anything we would write. Where they disagree with each other, the disagreement is the useful part.
Technical analysis of T.D. 10057 and REG-117199-25 →
A practitioner walk-through of the temporary and proposed regulations released October 1, 2026.
Current Federal Tax DevelopmentsTreasury, IRS propose regulations for education tax credit →
A short news summary: the $3,400 joint figure (each spouse giving $1,700), the five-year carryforward and the December 1 comment deadline.
Journal of AccountancyA technical analysis of § 25F guidance →
The most granular walk-through available of the statute and Notice 2025-70, written for practitioners. Start here if you want subsection-level detail.
Current Federal Tax DevelopmentsAdvance election for the new credit →
A short summary of Rev. Proc. 2026-6 and the SGO requirements from a Big Four national tax practice.
KPMG TaxNewsFlashIRS guidance on SGOs and the § 25F credit →
Written for school leaders and nonprofit staff rather than tax specialists. Covers what the guidance means operationally.
CliftonLarsonAllenUnderstanding the new federal tax credit →
A donor-facing explanation of the mechanics: the $1,700 cap, nonrefundability, the five-year carryforward, and the bar on also deducting the gift under § 170.
Landmark CPAsA new federal framework for education philanthropy →
A legal reading aimed at tax-exempt organizations, including the point that contributions to an unlisted organization do not qualify regardless of how it otherwise operates.
K-12 Legal InsightsECF does not provide tax or legal advice, and nothing on this page is advice. We link these sources because donors and school leaders have asked to read the law themselves, not as endorsement of any firm or as a substitute for your own advisor. § 25F is new, the regulations implementing it are proposed and not final, and the reading of any provision may change. Consult your own CPA or counsel before acting. If a link here is broken or out of date, tell us at info@educationchoicefund.org.