Which States Opted In to the Federal Scholarship Tax Credit? State-by-State Tracker

How many states opted in to the federal scholarship tax credit?

31 states, as of October 13, 2026. Thirty are on the IRS list of states that made an advance election for 2027, last updated September 14, 2026. New York became the 31st on October 9, when Governor Kathy Hochul said the state would participate. Three governors have said no (Minnesota, Oregon and Wisconsin). Sixteen states and DC haven't decided.

The deadline that matters most is January 1, 2027. Under Treasury's proposed rules, a state must file its advance election for 2027 (IRS Form 15714) by that date. States that miss it are out for 2027 and can try again for 2028.

This page covers the federal credit created by Section 25F, often called the Education Freedom Tax Credit. For how the credit itself works, see our federal scholarship tax credit guide.

State-by-state tracker (as of October 13, 2026)

"Opted in" means the state is on the IRS advance-election list. "No decision yet" includes states where a governor vetoed a bill that would have forced an opt-in but kept the door open. Policy is moving fast, so check the source link before you rely on a status.

A few notes on the table:

• Kansas, Kentucky and North Carolina joined after their legislatures overrode governors' vetoes. Virginia was enrolled by Governor Glenn Youngkin shortly before he left office in January 2026.
• Arizona's governor vetoed SB 1142 in April 2026. She said it was too early to join before federal guidance existed. She did not rule out opting in later.
• Rhode Island passed a law (H 7163, signed June 18, 2026) that requires the legislature and governor to approve any opt-in through a signed bill. Vermont's H.933 sets state limits on how scholarships may be used. Some of those limits may conflict with Treasury's proposed rule that states can't be stricter than federal law.
• Wisconsin's governor has said he won't opt in. Whoever wins the November 2026 governor's race will make the next decision.

What "opting in" actually means

Under 26 U.S.C. 25F, a state becomes a "covered state" when its governor, or another official named under state law, elects to take part and sends the IRS a list of qualifying SGOs located in the state. That opt-in decides two things:

1. Which SGOs count. Only organizations on a covered state's SGO list can receive gifts that earn the federal credit.
2. Which students benefit. An SGO must spend federal-credit gifts on scholarships for eligible students only within the state that listed it.

It does not decide who can give. Treasury's proposed rules say a donor "may contribute to any SGO without regard to the taxpayer's residence." A donor in Minnesota can give to an SGO listed by Iowa and claim up to $1,700, or $3,400 for a married couple where each spouse gives. That gift funds Iowa students.

Key deadlines under the proposed rules

Treasury published proposed rules on October 2, 2026. They are not final, but states, SGOs and donors may rely on them for gifts made on or after January 1, 2027.

Other rules worth knowing:

• One year at a time. Each election covers a single calendar year. Once a state completes an election, it can't revoke it for that year. A state that files an advance election but never submits an SGO list is out for that year.
• States can't be stricter than federal law. The proposed rules bar states from narrowing which schools or expenses SGOs may fund.
• The IRS SGO list is your safe harbor. Donors may rely on an organization's presence on the IRS SGO list at the time they give, unless they knew it didn't qualify.

If your state hasn't opted in

You still have two good options:

• Give across state lines. Choose an SGO listed by any covered state. The credit is the same. See how to choose an SGO and donate to a scholarship fund.
• Use your state's own credit. Some states that haven't joined, like Arizona and Pennsylvania, run their own tax-credit scholarships. A state credit reduces the federal credit only when it is claimed for the same qualified contribution. Our state guides explain the details.

Then tell your governor what you think. Opt-in decisions for 2027 must be made by January 1.

States with their own scholarship tax credits

These donor guides explain each state's credit and how it stacks with the federal $1,700:

• Alabama, Arizona, Arkansas, Florida, Georgia, Indiana, Iowa
• Kansas, Louisiana, Missouri, Montana, Nevada, New Hampshire, Ohio
• Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Utah, Virginia

New to this? Start with what a scholarship granting organization is, then read how to claim the federal scholarship tax credit. Families can check scholarships in their state. Edulist never handles donations: you give directly to the SGO, and we help you find one and record your pledge. This page is not tax advice, so ask your tax professional about your situation.