Federal Scholarship Tax Credit
Directing Tax Dollars Toward Classical Lutheran Schools
This page is designed to help CCLE schools understand and prepare to benefit from the new federal scholarship tax credit under Internal Revenue Code (IRC) Section 25F (§25F). Current resources include:
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Information for states with CCLE Accredited schools and/or Institutional Members, including participation status and lists of Scholarship Granting Organizations
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Implementation manual for school leaders, including helpful checklists and communication scripts
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Recommended links for further research
Check back for updates frequently. The CCLE will expand FSTC resources throughout 2026.
This page is intended solely for general informational and planning purposes and does not constitute legal, accounting, or tax advice. Schools, SGOs, families, and donors should confirm current federal and state requirements and consult qualified legal, tax, or financial professionals when appropriate.
State Information for the Federal Scholarship Tax Credit
As of September 2026, 30 states are listed by the IRS as having made an advance election for 2027. The CCLE has researched Scholarship Granting Organizations (SGOs) in some of these states and has provided initial information below. This information is accurate as of 10/9/2026 but is subject to change and should be verified before use. The CCLE does not endorse any specific SGO. Schools are encouraged to research independently to determine which SGO best suits their needs.
Alabama
PARTICIPATING (advance election made)
Next Requirement: Confirm the state's submitted/final SGO list and select an eligible partner.
School Action: Identify the state implementing agency; contact likely SGOs; obtain participation documents; prepare family/business-office workflow; verify SGO federal status before launch.
CCLE Findings:
Recent CCLE research identified Alabama Opportunity Scholarship Fund…
Arkansas
PARTICIPATING (advance election made)
Next Requirement: Confirm the state's submitted/final SGO list and select an eligible partner.
School Action: Identify the state implementing agency; contact likely SGOs; obtain participation documents; prepare family/business-office workflow; verify SGO federal status before launch.
CCLE Findings:
Recent CCLE research into Arkansas's existing philanthropic scholarship…
California
NOT on the current IRS Advance Election List
There is no confirmed in-state federal §25F route under the current IRS list.
School Action: Monitor the IRS and governor/designated state authority. Do not market a federal §25F donation route unless the state participates and an eligible SGO is identified.
CCLE Findings:
None.
Colorado
PARTICIPATING (advance election made)
Next Requirement: Confirm the state's submitted/final SGO list and select an eligible partner.
School Action: Identify the state implementing agency; contact likely SGOs; obtain participation documents; prepare family/business-office workflow; verify SGO federal status before launch.
CCLE Findings:
Recent CCLE research identified ACE Scholarships, Catholic Education…
Connecticut
NOT on the current IRS Advance Election List
There is no confirmed in-state federal §25F route under the current IRS list.
School Action: Monitor the IRS and governor/designated state authority. Do not market a federal §25F donation route unless the state participates and an eligible SGO is identified.
CCLE Findings:
None.
Florida
PARTICIPATING (advance election made)
Next Requirement: Confirm the state's submitted/final SGO list and select an eligible partner.
School Action: Identify the state implementing agency; contact likely SGOs; obtain participation documents; prepare family/business-office workflow; verify SGO federal status before launch.
CCLE Findings:
Recent CCLE research identified AAA Scholarship Foundation, ACE…
Georgia
PARTICIPATING (advance election made)
Next Requirement: Confirm the state's submitted/final SGO list and select an eligible partner.
School Action: Identify the state implementing agency; contact likely SGOs; obtain participation documents; prepare family/business-office workflow; verify SGO federal status before launch.
CCLE Findings:
Recent CCLE research identified Pay It Forward Scholarships,…
Idaho
PARTICIPATING (advance election made)
Next Requirement: Confirm the state's submitted/final SGO list and select an eligible partner.
School Action: Identify the state implementing agency; contact likely SGOs; obtain participation documents; prepare family/business-office workflow; verify SGO federal status before launch.
CCLE Findings:
Recent CCLE research has identified Access for Idaho…
Illinois
NOT on the current IRS Advance Election List
There is no confirmed in-state federal §25F route under the current IRS list.
School Action: Monitor the IRS and governor/designated state authority. Do not market a federal §25F donation route unless the state participates and an eligible SGO is identified.
CCLE Findings:
None.
Indiana
PARTICIPATING (advance election made)
Next Requirement: Confirm the state's submitted/final SGO list and select an eligible partner.
School Action: Identify the state implementing agency; contact likely SGOs; obtain participation documents; prepare family/business-office workflow; verify SGO federal status before launch.
CCLE Findings:
Recent CCLE research identified ACE Scholarships, Catholic Education…
Kansas
PARTICIPATING (advance election made)
Next Requirement: Confirm the state's submitted/final SGO list and select an eligible partner.
School Action: Identify the state implementing agency; contact likely SGOs; obtain participation documents; prepare family/business-office workflow; verify SGO federal status before launch.
CCLE Findings:
Recent CCLE research identified ACE Scholarships, ACSI Children’s…
Kentucky
PARTICIPATING (advance election made)
Next Requirement: Confirm the state's submitted/final SGO list and select an eligible partner.
School Action: Identify the state implementing agency; contact likely SGOs; obtain participation documents; prepare family/business-office workflow; verify SGO federal status before launch.
CCLE Findings:
Recent CCLE research identified ACE Scholarships, America Kids…
Michigan
NOT on the current IRS Advance Election List
There is no confirmed in-state federal §25F route under the current IRS list.
School Action: Monitor the IRS and governor/designated state authority. Do not market a federal §25F donation route unless the state participates and an eligible SGO is identified.
CCLE Findings:
None.
Minnesota
NOT on the current IRS Advance Election List
There is no confirmed in-state federal §25F route under the current IRS list.
School Action: Monitor the IRS and governor/designated state authority. Do not market a federal §25F donation route unless the state participates and an eligible SGO is identified.
CCLE Findings:
None.
Missouri
PARTICIPATING (advance election made)
Next Requirement: Confirm the state's submitted/final SGO list and select an eligible partner.
School Action: Identify the state implementing agency; contact likely SGOs; obtain participation documents; prepare family/business-office workflow; verify SGO federal status before launch.
CCLE Findings:
Recent CCLE research identified ACE Scholarships, ACSI Children’s…
Montana
PARTICIPATING (advance election made)
Next Requirement: Confirm the state's submitted/final SGO list and select an eligible partner.
School Action: Identify the state implementing agency; contact likely SGOs; obtain participation documents; prepare family/business-office workflow; verify SGO federal status before launch.
CCLE Findings:
Recent CCLE research has identified ACE Scholarships, Catholic…
Nebraska
PARTICIPATING (advance election made)
Next Requirement: Confirm the state's submitted/final SGO list and select an eligible partner.
School Action: Identify the state implementing agency; contact likely SGOs; obtain participation documents; prepare family/business-office workflow; verify SGO federal status before launch.
CCLE Findings:
Recent CCLE research has identified ACE Scholarships, Catholic…
Nevada
PARTICIPATING (advance election made)
Next Requirement: Confirm the state's submitted/final SGO list and select an eligible partner.
School Action: Identify the state implementing agency; contact likely SGOs; obtain participation documents; prepare family/business-office workflow; verify SGO federal status before launch.
CCLE Findings:
Recent CCLE research identified AAA Scholarship Foundation, ACE…
New Mexico
NOT on the current IRS Advance Election List
There is no confirmed in-state federal §25F route under the current IRS list.
School Action: Monitor the IRS and governor/designated state authority. Do not market a federal §25F donation route unless the state participates and an eligible SGO is identified.
CCLE Findings:
None.
New York
NOT on the current IRS Advance Election List
There is no confirmed in-state federal §25F route under the current IRS list.
School Action: Monitor the IRS and governor/designated state authority. Do not market a federal §25F donation route unless the state participates and an eligible SGO is identified.
CCLE Findings:
None.
North Carolina
PARTICIPATING (advance election made)
Next Requirement: Confirm the state's submitted/final SGO list and select an eligible partner.
School Action: Identify the state implementing agency; contact likely SGOs; obtain participation documents; prepare family/business-office workflow; verify SGO federal status before launch.
CCLE Findings:
Recent CCLE research identified ACE Scholarships, America Kids…
Ohio
PARTICIPATING (advance election made)
Next Requirement: Confirm the state's submitted/final SGO list and select an eligible partner.
School Action: Identify the state implementing agency; contact likely SGOs; obtain participation documents; prepare family/business-office workflow; verify SGO federal status before launch.
CCLE Findings:
Recent CCLE research identified ACE Scholarships, America Kids…
Oklahoma
PARTICIPATING (advance election made)
Next Requirement: Confirm the state's submitted/final SGO list and select an eligible partner.
School Action: Identify the state implementing agency; contact likely SGOs; obtain participation documents; prepare family/business-office workflow; verify SGO federal status before launch.
CCLE Findings:
Recent CCLE research identified ACE Scholarships, Catholic Education…
Texas
PARTICIPATING (advance election made)
Next Requirement: Confirm the state's submitted/final SGO list and select an eligible partner.
School Action: Identify the state implementing agency; contact likely SGOs; obtain participation documents; prepare family/business-office workflow; verify SGO federal status before launch.
CCLE Findings:
The CCLE has found that the LCMS Texas…
Utah
PARTICIPATING (advance election made)
Next Requirement: Confirm the state's submitted/final SGO list and select an eligible partner.
School Action: Identify the state implementing agency; contact likely SGOs; obtain participation documents; prepare family/business-office workflow; verify SGO federal status before launch.
CCLE Findings:
Recent CCLE research has identified ACE Scholarships Utah,…
Virginia
PARTICIPATING (advance election made)
Next Requirement: Confirm the state's submitted/final SGO list and select an eligible partner.
School Action: Identify the state implementing agency; contact likely SGOs; obtain participation documents; prepare family/business-office workflow; verify SGO federal status before launch.
CCLE Findings:
Recent CCLE research has identified ACE Scholarships, ACSI…
Wisconsin
NOT on the current IRS Advance Election List
There is no confirmed in-state federal §25F route under the current IRS list.
School Action: Monitor the IRS and governor/designated state authority. Do not market a federal §25F donation route unless the state participates and an eligible SGO is identified.
CCLE Findings:
None.
Wyoming
PARTICIPATING (advance election made)
Next Requirement: Confirm the state's submitted/final SGO list and select an eligible partner.
School Action: Identify the state implementing agency; contact likely SGOs; obtain participation documents; prepare family/business-office workflow; verify SGO federal status before launch.
CCLE Findings:
Recent CCLE research has identified ACE Scholarships Wyoming,…
Download the Implementation Manual
This manual is designed to help CCLE schools understand and prepare to benefit from the new federal scholarship tax credit under Internal Revenue Code (IRC) Section 25F (§25F). It provides practical guidance for school leaders, including steps schools can take now, how to identify and evaluate a qualified Scholarship Granting Organization (SGO), how to communicate with families and prospective donors, how to coordinate scholarship payments and related procedures internally, and what information should be verified as implementation progresses toward the program’s January 1, 2027, launch.
Recommended Links
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IRS - Federal Scholarship Tax Credit (participating states and implementation updates)
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IRS - Advance election announcement and Revenue Procedure 2026-6
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U.S. Treasury - Education Freedom Tax Credit guidance preview
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Alabama Department of Revenue - Federal SGO program implementation example
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Indiana Department of Revenue - Existing School Scholarship Credit / SGO program