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

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

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 Wyoming'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 Wyoming public school.

Wyoming's opt-in status

Wyoming is opted in and appears on the IRS advance-election list updated September 14, 2026. In August 2025, Governor Mark Gordon was still weighing the decision. His spokesperson said he wanted "a plan that best fits Wyoming."

That plan is now public. On October 12, 2026, the Wyoming Department of Education (WDE) opened applications for nonprofits that want to be Wyoming SGOs:

• Applicants must meet federal law and Wyoming administrative rules, and show they can manage scholarship money, report finances openly and serve Wyoming students.
• WDE reviews applications on a rolling basis and recommends each one to the Governor's office, which makes the final decision.
• Applications are due December 1, 2026, for the 2027 tax year.
• An SGO can't collect funds until it's approved.
• WDE will post the approved list on its SGO page starting in January 2027.

"This program gives individuals a direct way to invest in those opportunities," Gordon said.

What it means for Wyoming donors

Wyoming has no personal income tax and no state scholarship tax credit. The federal credit is the whole tax benefit, and nothing is subtracted from your gift first.

Worked example. A Cheyenne couple owes $6,500 in federal tax for 2027. In late January, after WDE posts the approved list, each spouse gives $1,700 to a Wyoming SGO. They claim $3,400 on their joint return, and their federal tax drops to $3,100.

What it means for Wyoming families

Wyoming's state program is the ESA created by the Steamboat Legacy Scholarship Act, for students not enrolled in public school. Our Wyoming scholarships guide covers amounts, court status and deadlines.

SGO scholarships are separate, privately funded and open to more families. Public school students can qualify, which the ESA doesn't allow. WDE lists tuition, tutoring and instructional materials among the uses. Federal qualified expenses also include special needs services, books, supplies and computer technology. Each SGO decides what it funds, and Treasury's guidance on homeschool costs is still coming.

Wyoming timeline

• December 1, 2026: SGO applications due for 2027.
• January 1, 2027: credit-eligible giving begins.
• January 2027: WDE begins posting the approved SGO list.
• February 15, 2027: Wyoming'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. Check WDE's approved list in January 2027 and the IRS SGO list. ACE Scholarships lists Wyoming among the states it serves.
2. Give cash on or after January 1, 2027, and designate it for Wyoming. 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. Running a nonprofit that plans to apply? Register your SGO with Edulist.

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