Federal Education Freedom Tax Credit scholarships in Florida

The Education Freedom Tax Credit is a new federal program under section 25F of the Internal Revenue Code. People who give cash to a Scholarship Granting Organization (SGO) get a federal tax credit of up to $1,700², and SGOs turn those gifts into K-12 scholarships for public- and private-school students in households at or below 300% of area median income³. Florida has opted in, and gifts count starting January 1, 2027¹. No organization is on Florida's SGO list yet: the state's first list is due February 15, 2027⁴, and no SGO is taking scholarship applications.

What it is

Congress created the credit in P.L. 119-21⁵, enacted July 4, 2025⁶. It applies to taxable years ending after December 31, 2026⁷, and the law sets no end date⁸. The money path is simple:

1. An individual gives cash to an SGO, which must hold it in a separate account used only for these gifts⁹.
2. The SGO awards scholarships to eligible students for qualified education expenses.
3. The donor claims the federal credit on their tax return. See the donor side.

The scholarship is not federal income to the family¹⁰. The money comes from private donations, not from a government budget line, so it is separate from Florida's own scholarships.

Florida's status and key dates

Florida's opt-in was announced by the Governor on January 28, 2026¹¹, and the IRS lists Florida among¹² the 30¹³ states that made the 2027 election. Florida has not published how an organization asks to be put on its SGO list¹⁴. The 2026-27 state budget gives the Florida Department of Education $2,000,000¹⁵ to build systems for the credit, through a vendor that must be independent of any SFO or SGO.

Who can get a scholarship

• Income. Household income must be at or below 300% of area median gross income³, adjusted for family size²⁰. Income is counted for the calendar year before you apply³, and the household is the student plus everyone living with the student²¹. This is a different test from the federal poverty level tiers that set priority in Florida's state programs; see income limits.
• No dollar table yet. The IRS has not yet published²² the dollar limits by area and family size. Until it does, any dollar figure on an organization's website is an estimate. We do not publish a table or calculator until the IRS figures exist.
• Public or private school. The student must be eligible to enroll in a public elementary or secondary school, though not necessarily enrolled in one²³. Students in public, charter and private schools can qualify, and public-school students can use scholarships for qualified expenses²⁴.
• Where you live. Under the proposed rules, the student must live in the state whose list the SGO is on, with exceptions for military families²⁵.
• Proof of income. The proposed rules let an award letter dated within 12 months from SNAP, TANF, WIC, Section 8 housing or SSI²⁶ verify income, and treat foster children as meeting the income test²⁷. These rules are not final.
• Who is funded first. SGOs must give priority to students who had a scholarship the year before, then their siblings²⁸.

What scholarships can pay for

Qualified expenses are the K-12 expenses listed for Coverdell education savings accounts in IRC §530(b)(3)(A)²⁹: tuition; fees; academic tutoring; special needs services for a student with special needs; books; supplies; other equipment; room and board (if required or provided by the school); uniforms (if required or provided by the school); transportation (if required or provided by the school); supplementary items and services including extended day programs (if required or provided by the school); computer technology or equipment; internet access and related services³⁰.

• Some items depend on the school. Uniforms, transportation and extended-day programs count only when the school requires or provides them, so a program with no tie to the child's school may not qualify.
• Guidance is pending. Treasury has not yet issued³¹ its guidance on qualified expenses. Whether Florida home education or PEP costs qualify is not settled³².
• Amounts. The law sets no maximum scholarship; an award may not exceed the expenses it covers³³. No SGO has published award amounts for Florida³⁴.
• How payment works. Under the proposed rules, tuition and fees are paid directly to the school, other vendors are paid directly only if verified and unrelated to the family, and families get cash only as receipted reimbursements³⁵.

SGOs are not SFOs

Florida's state scholarships (FES-EO, FES-UA, FTC and PEP) are run by scholarship funding organizations (SFOs) approved by the State Board of Education³⁶. The federal credit is run by SGOs, a different kind of organization. Being an approved state SFO does not make an organization an SGO; it must be on a state's SGO list³⁷. An SGO must be a 501(c)(3) public charity, not a private foundation³⁸, give scholarships to at least 10³⁹ students who do not all attend the same school, and spend at least 90%⁴⁰ of its income on scholarships.

Organizations that have announced plans for Florida, none of them listed yet:

• Step Up, Step Further, which Step Up For Students set up as a separate nonprofit⁴¹. It says it will accept donations from January 1, 2027⁴². The AFC Scholarship Fund has announced a partnership with it⁴³.
• AAA Scholarship Foundation says it intends to participate as an SGO in Florida⁴⁴, along with other states. See its profile.

Until Florida files its list, no organization can say it is an approved Florida SGO.

Using it with a Florida scholarship

Step Up, Step Further says its scholarship can be used in addition to⁴⁵ a state scholarship. Florida's rule that bars FES and FTC students from receiving another scholarship refers to scholarships under chapter 1002 of state law, and no official reading applies it to SGO awards⁴⁶. Whether an SGO award would count as household income for the state programs' priority tiers is also not settled⁴⁷. Ask your SFO before you accept both.

For donors and providers

• Donors: the credit is nonrefundable⁴⁸ and capped per taxpayer. Read how the donor credit works.
• Schools, tutors and therapists: see provider questions about the federal credit.

Related

• FAQ: the federal tax credit scholarships
• All Florida K-12 scholarship programs
• FES-EO and FTC and the state FTC program
• Compare Florida's scholarship organizations
• All scholarship organizations