Federal Scholarship Tax Credit
Directing Tax Dollars Toward Classical Lutheran Schools
Beginning January 1, 2027, the new Federal Scholarship Tax Credit under Internal Revenue Code §25F will allow eligible taxpayers to receive a federal tax credit for qualifying contributions to Scholarship Granting Organizations (SGOs). These organizations, in turn, provide scholarships to eligible students for qualified elementary and secondary educational expenses.
For classical Lutheran schools, this new program may present an important opportunity—but understanding how to prepare for and participate in the program can be complicated. 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.
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
Lutheran Scholarship Granting Organizations
The CCLE does not endorse any specific SGO. Schools are encouraged to research independently to determine which SGO best suits their needs.
State Information for the Federal Scholarship Tax Credit
As of October 2026, 30 states are listed by the IRS as having made an advance election for 2027. State participation is not the same as an approved donation route. An advance election alone does not establish that a particular Scholarship Granting Organization (SGO) is eligible. The IRS states that the state must also provide a list of participating SGOs before taxpayers can claim the credit for contributions to an SGO. The CCLE has researched 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:
Visit https://eftccredit.com/sgos to find a current list of…
Alaska
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
Arizona
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.
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:
Visit https://eftccredit.com/sgos to find a current list of 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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
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.
Delaware
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
Hawaii
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.
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
Iowa
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
Louisiana
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
Maine
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.
Maryland
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.
Massachussetts
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.
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.
Mississippi
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
New Hampshire
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
New Jersey
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 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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
North Dakota
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
Oregon
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.
Pennsylvania
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.
Rhode Island
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.
South 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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
South Dakota
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
Tennessee
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
Vermont
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.
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
Washington
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.
West 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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…
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:
Visit https://eftccredit.com/sgos to find a current list of Scholarship…