Florida Tax Credit Scholarship Donations: How Businesses and Individuals Can Give in 2026

Florida's tax credit scholarship turned 25 in 2026, and it is one of the largest in the country. It is a business program: companies redirect certain Florida taxes to nonprofit scholarship-funding organizations (SFOs) and get a dollar-for-dollar credit. What's new is the individual side. Florida opted in to the federal scholarship tax credit, so from January 1, 2027, Florida residents and people in any other state can give to a Florida SGO and claim up to $1,700 each on their federal return.

This is general information, not tax advice. Ask your tax professional about your situation.

How Florida Tax Credit Scholarship donations work

The Florida Department of Revenue (DOR) gives a credit equal to 100% of an approved contribution against these Florida taxes:

Florida used to allow credits against sales tax on commercial rent. That tax was eliminated effective October 1, 2025, and DOR says it can't accept new commercial rent credit applications for fiscal year 2025-26.

The Florida Department of Education designates which SFOs can receive contributions. Step Up For Students administers most of the state's scholarships, and AAA Scholarship Foundation also takes FTC contributions.

Who can claim it: businesses vs. individuals

Businesses are the core of the program. A credit only helps if you owe one of the taxes above.

Individuals have a narrower path, because Florida has no personal income tax. The one option is at the car dealer: when you buy or register a qualifying vehicle, you can designate $105 of the state sales tax (or the full state tax if it's less) to a participating SFO. DOR's example: on a $25,000 car, the dealer sends $105 of the $1,500 state sales tax to the SFO instead of to the state. It costs you nothing extra.

For most individuals, the bigger opportunity starts in 2027 with the federal credit.

Allocation, caps and deadlines for businesses

Florida's credits are limited by an annual statewide cap, so businesses must reserve credits before they give:

1. Apply for an allocation. Apply online to DOR with your federal ID number, the SFO you plan to give to, and the amount for each tax.
2. Wait for written approval. The confirmation number only shows DOR received your application. DOR sends a letter with the approved allocation.
3. Give. Make a monetary contribution to the SFO named in your application. The SFO issues a Certificate of Contribution.
4. Claim. Take the credit on the matching return. For corporate income tax, attach each certificate.

Corporate income tax timing: applications open on the first business day of January for taxable years beginning that calendar year. DOR accepts them until the cap is reached or the day before the return's due date (or extended due date), whichever comes first. DOR also notes the credit must be reduced by the resulting decrease in federal income tax, and the credit taken is added back to taxable income once.

Changed your plans? You can ask DOR to rescind all or part of an allocation so the credits go to other taxpayers. Credits can be transferred only in limited cases, such as within an affiliated group with DOR's approval on Form DR-116200. For a side-by-side look at Florida, Arizona, Georgia and Pennsylvania, see our guide to business tax credit scholarships.

How Florida's credit stacks with the federal $1,700 credit

The federal credit under Section 25F returns up to $1,700 per individual taxpayer ($3,400 for a married couple who each give) for cash gifts to an SGO on an opted-in state's list. Gov. Ron DeSantis opted Florida in, and Florida appears on the IRS list of states that made an advance election (current as of September 14, 2026). Our Education Freedom Tax Credit guide covers every rule.

Here's how the two programs fit together:

• They serve different donors. Florida's credit is for businesses. The federal credit is for individuals giving directly. Treasury's proposed rules say gifts made by a partnership or S corporation don't count toward an owner's federal credit.
• Nothing to subtract for most individuals. The federal credit is reduced by state credits claimed on a state tax return for the same qualified gift. Florida residents don't file a state income tax return, so a Florida donor can usually claim the full $1,700. The $105 vehicle designation is handled at the dealer rather than claimed on an income tax return; ask your tax professional if you're unsure.
• Out-of-state donors are welcome. You can give to a listed Florida SGO from any state.

Worked example: a Florida business owner and spouse

The corporate gift and the personal gifts are separate, so neither reduces the other. The couple claims $3,400 on their joint 2027 federal return, filed in 2028, as long as they owe at least that much. Unused federal credit carries forward up to five years.

How to give to a Florida SGO for the federal credit

1. Pledge now. Tell us your amount on Edulist's donor page. We'll remind you when giving opens on January 1, 2027. You give directly to the SGO; Edulist never takes donations.
2. Check the IRS SGO list. Florida must send its list to the IRS by February 15, 2027 under the proposed rules. You can rely on an SGO being on the IRS list when you give.
3. Give cash and designate it. Tell the SGO the gift is a qualified contribution for the federal credit.
4. Keep the acknowledgment. The SGO must send a written acknowledgment with your unique donor number by January 31, 2028.
5. Claim on Form 8525. Our guide to claiming the federal credit walks through it.

Not sure which organization to pick? Use our checklist for choosing a scholarship fund, and see the tracker of states that opted in if you also want to support students elsewhere.

What the scholarships pay for

Florida's scholarships pay private school tuition and, through education savings accounts, curriculum, tutoring and therapies. Federal SGO scholarships can cover tuition, tutoring, books, supplies and computer equipment for students in households earning up to 300% of area median income. Families can see the programs on our Florida scholarships page.