Education Freedom Tax Credit in West Virginia: How Donors Give and Families Qualify

What is the Education Freedom Tax Credit and how can you qualify in West Virginia?

The Education Freedom Tax Credit is the federal scholarship tax credit in Section 25F of the tax code. You give cash to a scholarship granting organization (SGO), and your federal income tax drops by the same amount, up to $1,700 a year. Gifts count starting January 1, 2027.

Donors qualify if they are U.S. citizens or residents who owe federal income tax and give cash to an SGO on West Virginia's list, or any covered state's list. You designate the gift as a qualified contribution. There's no donor income limit.

Families qualify for the scholarships if household income is at or below 300% of area median gross income and the child is eligible to enroll in a West Virginia public school.

West Virginia's opt-in status

West Virginia is opted in and appears on the IRS advance-election list updated September 14, 2026. The next step is the state's list of SGOs. West Virginia hasn't published one, and under Treasury's proposed rules it's due by February 15, 2027. Until an organization is on that list, gifts to it won't earn the credit.

What it means for West Virginia donors

West Virginia has a state income tax, but no state scholarship tax credit. So there's no state credit to subtract, and your full gift up to $1,700 counts toward the federal cap.

Worked example. A Charleston donor gives $1,700 in March 2027 to a West Virginia SGO but forgets to designate it as a qualified contribution. Under the proposed rules, the designation must be made when you give, so that gift may not earn the credit. Tell the SGO in writing, at the time of the gift, that it's a qualified contribution for West Virginia.

What it means for West Virginia families

West Virginia already has a broad state program. The Hope Scholarship is an education savings account, and as of the 2026-27 school year it's open to every K-12 student eligible for public school, including students already in private school or homeschool. It's run by the Hope Scholarship Board under the State Treasurer's Office. The amount you get in your first year depends on when you apply. Our Hope Scholarship guide has the details.

SGO scholarships are private money on top of that. A family whose private school tuition is more than the Hope deposit could use an SGO award for the gap, if the SGO allows it. Public school students, who don't use Hope, can use SGO scholarships for academic tutoring, books, supplies or computer technology. Qualified expenses also include special needs services. Each SGO decides what it funds, and Treasury's guidance on homeschool costs is still coming. See all options in our West Virginia scholarships guide.

West Virginia timeline

• December 1, 2026 to February 28, 2027: last Hope window for 25% first-year funding in 2026-27.
• January 1, 2027: credit-eligible giving begins.
• February 15, 2027: West Virginia's 2027 SGO list due to the IRS.
• January 31, 2028: SGO acknowledgements for 2027 gifts.
• Spring 2028: claim on your 2027 return.

How to give and claim

1. Watch for West Virginia's SGO list, then confirm your SGO is on the IRS SGO list when you give. West Virginia organizations will appear in our SGO directory as they join.
2. Give cash on or after January 1, 2027, and designate it for West Virginia. Spouses each give separately.
3. Keep the acknowledgement with your donor number.
4. File Form 8525. See how to claim the federal scholarship tax credit, and use our checklist to donate to a scholarship fund.

Edulist doesn't take donations. You give directly to the SGO. You can pledge on Edulist and we'll email you when West Virginia's list is published. This page reflects Treasury's proposed rules as of October 13, 2026. It is not tax advice; ask your tax professional.