The federal Education Freedom Tax Credit scholarships starting in 2027: what families need to know. Each answer names the programs and scholarship organizations it applies to and links to the statute, State Board item or SFO handbook it comes from. Questions are written the way families search for them.
We are not your scholarship organization and can't see your account. For decisions about your child’s scholarship, contact your SFO: Step Up For Students, AAA Scholarship Foundation or Sunshine State Kids Foundation.
What is the education freedom tax credit scholarship?
It is a new federal program: individuals who give cash to approved scholarship granting organizations (SGOs) get a dollar-for-dollar federal tax credit of up to $1,700 a year, and SGOs use the money for K-12 scholarships.1 Gifts can count starting January 1, 2027, and Florida has opted in.23 It is separate from Florida's FTC scholarship and from the state SFOs.4
Can public school students get the new federal scholarship?
Yes. A student must be eligible to enroll in a public K-12 school and live in a household at or below 300% of area median income; qualified expenses include tutoring, books, supplies, computers and special-needs services connected to school enrollment.152 Private and religious school tuition also qualifies and is paid directly to the school.56
When can I apply for Step Up, Step Further?
Not yet: applications are not open, and you can join SSF's interest list.78 SSF says scholarships are "expected to start being granted in 2027."9 No Florida SGO is official until the state files its list, due February 15, 2027.4
What is 300% of area median income in miami-dade?
Not officially published as of Oct 19, 2026; the IRS will publish the limits by area and family size.6 SGO lookup tools currently use one county figure with no family-size adjustment, which is not the family-size-adjusted method the statute and proposed rules call for, so treat any number you see as an estimate.10116 The income year is the calendar year before you apply.1
Can I get Step Up, Step Further on top of my FES-UA or Step Up scholarship?
SSF says its scholarship "can be used in addition to" Step Up and AAA Scholarship Foundation state scholarships, and federal law has no stacking bar.126 SGOs must keep the same expense from being paid twice, and an award can't exceed the expense.6 Florida's one-scholarship rule covers scholarships under chapter 1002 of state law; we found no official interpretation applying it to SGO awards.13
Is Step Up, Step Further the same thing as Step Up For Students?
No. Step Up For Students is a state SFO for Florida's programs; "Step Up, Step Further" is the federal scholarship fund SUFS announced, set up as a separate 501(c)(3).144 Being a state SFO doesn't make an organization a federal SGO; it must be on Florida's SGO list.4 AAA Scholarship Foundation says it also intends to be an SGO in Florida.11
How much will the federal scholarship be?
Not published as of Oct 19, 2026; Step Up, Step Further's applications aren't open yet.7 There is no statutory cap on a scholarship; SGOs set amounts, but an award can't exceed the expenses it covers.2
Can homeschoolers or PEP students in Florida use the federal scholarship?
Unsettled. Qualified expenses must connect to a "school" as defined by state law, and Florida law says home education is not a private school and treats PEP as parent-directed instruction.515 Treasury has said guidance on qualified expenses and "school" is coming; it had not been issued as of Oct 19, 2026.6
Does the federal scholarship pay for therapy or after school programs?
Special-needs services qualify for a special-needs student; after-school ("extended day") programs, transportation and uniforms qualify only if required or provided by the school.5 A standalone third-party after-school program is not clearly covered, pending Treasury guidance.52
Is the federal scholarship taxable income for my family?
No. Federal law (section 139K) excludes SGO scholarships used for qualified expenses from the family's gross income.162
If I donate to Step Up, Step Further do I get $1,700 back? Is it refundable?
It's a credit, not a deduction, worth up to $1,700 per taxpayer per year, and it is nonrefundable: it can't exceed the federal income tax you owe, and unused credit carries forward up to 5 years.16 Spouses on a joint return can each claim up to $1,700 if each designates up to $1,700 of their own gift.6 Only cash counts, the gift must be made on or after January 1, 2027, and you can't pick which student gets it.421
We get snap — do we have to send tax returns to qualify?
Under the proposed rules, a SNAP, TANF, WIC, Section 8 or SSI award letter dated within 12 months can verify income, and foster children are covered by a safe harbor.6 These are proposed rules; final rules had not been issued as of Oct 19, 2026.6
Does the federal scholarship money come from the government?
No. It comes from private donations to SGOs, and donors are offset by their federal tax credits.91
Which organizations are SGOs in Florida?
None is official yet: Florida must file its 2027 SGO list with the IRS by February 15, 2027.4 Step Up, Step Further and AAA Scholarship Foundation have announced plans to participate.911 Florida's approved state SFOs are not a federal SGO list.4
More family questions
- Eligibility
- Amounts and balances
- Deadlines and payment timing
- What you can buy
- Using EMA, SMP and Odyssey
- Finding tutors, therapists and providers
- Private schools
- Switching programs and scholarship organizations
- Account problems
See also: all Florida K-12 scholarship programs, award amounts and deadlines.
Sources
- 26 U.S. Code §25F, Qualified elementary and secondary education scholarships (LII) · subsections (a)-(h) and Effective Date note · verified on
- U.S. Treasury/ED, Fact Sheet: President Trump Delivers Affordable School Choice Options Through Education Freedom Tax Credit (updated after Oct 1, 2026 regs) · all sections · IRS (Treasury) · verified on
- Executive Office of the Governor, Governor Ron DeSantis Announces Florida Opts in to Federal Education Freedom Tax Credit Supporting School Choice (Jan 28, 2026) · full release · state · verified on
- Federal Scholarship Tax Credit, Temporary regulations T.D. 10057, 91 FR 62655 (Oct 2, 2026), FR Doc. 2026-20264 · DATES; Explanation of Provisions I-III; IV Applicability; §§1.25F-1T, -4T(b)-(c), -5T(c)(3)-(4), (d)(7), (f) · IRS · verified on
- 26 U.S. Code §530, Coverdell education savings accounts (LII) · §530(b)(3)(A)-(C) · verified on
- Federal Scholarship Tax Credit, Notice of proposed rulemaking REG-117199-25, 91 FR 62818 (Oct 2, 2026), FR Doc. 2026-20277 · Preamble Background V, Explanation of Provisions I-VI, Special Analyses; proposed §§1.25F-1 to 1.25F-5 (esp. §1.25F-1(a), -2(a)-(h), -3(c)(4)-(8), -3(d), -4(d)-(e), -5(c)-(e)) · IRS · verified on
- Step Up, Step Further, 5 Things Parents & Guardians Need to Know About the 2027 Education Freedom Tax Credit (May 26, 2026) · items 1-5, "Looking Ahead" · SGO · verified on
- Step Up, Step Further, Interest List · full page · SGO · verified on
- Step Up, Step Further, home page and FAQ · FAQ; "Florida opted in ... January, 28, 2026" · SGO · verified on
- Step Up, Step Further, AMI Lookup Tool and client script ami.js v1.1.1 · tool disclaimer; result template (percent_of_mfi, "HUD Income Limits data") · SGO · verified on
- AAA Scholarship Foundation, Education Freedom Tax Credit Scholarships · intro, "Where things stand," donor FAQs, AMI FAQ · SGO · verified on
- Step Up, Step Further, For Parents · FAQs for Parents · SGO · verified on
- Florida Statutes s. 1002.395 (2026), Florida Tax Credit Scholarship Program · (2)(j) "Household income"; student ineligibility list, para. (c) · state · verified on
- Step Up, Step Further, Florida Expands Opportunity for Students Through Education Freedom Tax Credit Program (Jan 28, 2026) · full post · SGO · verified on
- Florida Statutes s. 1002.01 (2026), Definitions · subsections (1)-(3) · state · verified on
- Public Law 119-21 (H.R. 1), "An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14" · §70411(a)-(c), 139 Stat. 215-218; §70413, 139 Stat. 218-219; TOC (Subchapter B heading) · verified on