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This afternoon marked a meaningful milestone in the implementation of the federal tax credit scholarship program. The U.S. Department of the Treasury, through the IRS, issued Revenue Procedure 2026-6, formally allowing governors to make an advance election to opt their states into the federal tax credit scholarship law. This action sets the stage for the program to take effect nationwide beginning January 1, 2027, provided states choose to participate. What This Means for States Under the federal tax credit scholarship law, states must opt in for the program to operate within their borders. Revenue Procedure 2026-6 establishes the mechanism for doing exactly that. Governors, or other authorized state officials or agencies, may now formally notify the IRS of their intent to participate. By opting in, a state authorizes the federal scholarship tax credit to generate scholarship funding for eligible elementary and secondary students who reside in that state. This opt-in process is not symbolic. It is a required and foundational step that allows scholarship dollars to flow to families. Introduction of a New IRS Form The Revenue Procedure also introduces Form 15714, which governors will use to submit their official election to the IRS. This filing represents the state’s formal participation in the program. Following this election, governors will be required to prepare and submit a list of scholarship granting organizations, or SGOs, within their state that meet the requirements of the federal tax credit scholarship law. At this time, the IRS has not yet released guidance defining how states should determine which SGOs meet those requirements. That guidance is expected in the coming weeks, and it will be a critical next step for organizations, schools, and policymakers to understand. Why This Matters Now This announcement is an important and encouraging early signal from the Trump administration that implementation of the federal tax credit scholarship program is moving forward deliberately and thoughtfully. By allowing governors to opt in well ahead of the program’s effective date, the Treasury and IRS are creating valuable runway. That time matters. It gives SGOs time to prepare operationally. It gives schools time to understand how the program may impact affordability and access. It gives families time to learn what opportunities may become available to them. Most importantly, it gives states time to engage in the process intentionally rather than reactively. What Comes Next While this Revenue Procedure does not answer every question, it represents real progress. The upcoming IRS guidance on SGO qualification will be a major focus point for the education and scholarship community in the months ahead. At RedefinED, we view this as a pivotal moment to begin preparing schools, partners, and policymakers for what is coming. The federal tax credit scholarship program has the potential to significantly expand educational opportunity across the country, but preparation will be key. January 1, 2027 will arrive quickly. Today’s announcement is a clear signal that the work to get there has officially begun. Return Home

When it comes to expanding school choice, two major tools often come up in conversation: education vouchers and tax credit scholarships. While they both aim to give families more options in choosing the right school for their child, they work very differently. Understanding the distinction is key—especially with the upcoming Educational Choice for Children Act (ECCA), which will operate as a tax credit program, not a voucher system. What Are Education Vouchers? Education vouchers are direct government-funded certificates that parents can use to pay tuition at private schools instead of public schools. Essentially, a portion of the taxpayer money that would have funded a child’s education in the public system follows that student to the private school of their choice. How vouchers work in practice: Funded directly by the state. Parents receive a set dollar amount toward tuition. Public school dollars are reallocated to private education. While this approach gives families flexibility, it often sparks debates around whether public school funding is being diverted. What Are Tax Credit Scholarships? Tax credit scholarships work differently. Instead of pulling dollars out of the public system, they incentivize private donations by offering tax credits. How tax credits work in practice: Individuals and businesses contribute to scholarship organizations. In return, they receive a percentage of their contribution back as a tax credit. The scholarship organizations then use those funds to provide tuition assistance for families. This model shifts the focus from government spending to private giving, empowering donors to directly support educational opportunities while keeping public school funding intact. Where Does the ECCA Program Fit? The Educational Choice for Children Act (ECCA) is a federal tax credit scholarship program set to launch in 2027. Here’s why that’s important: It’s not a voucher. No federal or state education dollars are being redirected. It’s fueled by private contributions. Donors will receive a tax credit for contributing to scholarship-granting organizations. It expands access. Families who may not have been able to afford private education will gain new opportunities. In short, the ECCA combines the best of both worlds—encouraging private philanthropy while opening doors for students to attend schools that best fit their needs. Why the Distinction Matters Confusion between vouchers and tax credits is common, but the distinction matters because: Policy debates differ. Critics often focus on voucher programs’ impact on public school budgets, while tax credits avoid this tension. Donor involvement increases. Tax credits bring private dollars into education instead of redistributing existing funds. Public perception shifts. Framing ECCA as a tax credit scholarship program helps clarify that it’s about creating opportunities through giving, not cutting public school support. Final Thought The upcoming ECCA program represents one of the most significant expansions of school choice in U.S. history. By leveraging tax credits instead of vouchers, it ensures that families gain access to new educational opportunities while strengthening a culture of giving. At RedefinED, we’re here to help schools prepare for this landmark program—so they can raise more, grow more, and do more for their students. Return Home