News

Proposed regulations would allow married couples filing jointly potentially to claim up to $3,400 and will provide new guidance for scholarship organizations, states, and contributors 

COLORADO SPRINGS, Colo. — Oct. 1, 2026 — The U.S. Department of the Treasury and Internal Revenue Service (IRS) today released proposed and temporary regulations providing significant new guidance to implement the federal Education Freedom Tax Credit (EFTC), scheduled to launch Jan. 1, 2027. The temporary regulations go into immediate effect.  

The federal program will allow individual taxpayers to receive a nonrefundable, dollar-for-dollar federal income tax credit of up to $1,700 for qualified cash contributions to eligible Scholarship Granting Organizations (SGOs). Under the newly proposed regulations, married couples filing jointly may claim a combined credit of up to $3,400, provided each spouse makes a qualified contribution of up to $1,700. 

The Treasury and the IRS temporary regulations establish procedures that states and SGOs can now use to prepare for the program’s 2027 launch. These include state election and SGO certification procedures, electronic registration, donor acknowledgements and reporting requirements. 

For 2027, a state making an advance election to participate must do so on or before Jan. 1, 2027, and may finalize its list of approved SGOs by Feb. 15, 2027. 

The proposed regulations are subject to public comment before final regulations are issued. Treasury and the IRS have stated that taxpayers, states and SGOs may rely on the temporary and proposed regulations for qualified contributions beginning Jan. 1, 2027. 

“This is a historic moment for education in America and a remarkable opportunity for families seeking Christian education,” said Temple Weiss, President of the ACSI Education Foundation and Children’s Tuition Fund. “The Treasury Department's updated guidance, including the ability for married couples filing jointly to receive a federal tax credit of up to $3,400, has the potential to unlock significant new resources for students and families nationwide. The ACSI Children's Tuition Fund is prepared to meet the requirements of this program and to work alongside Christian schools, families, and supporters to maximize its impact.” 

Weiss believes this is a significant milestone opening the door to quality, Christ-centered education.  

“We encourage individuals and families to see this not simply as a tax benefit, but as a missional movement. We believe this will be transformational for a generation of students, and we invite contributors across America to turn their tax dollars into a lasting investment in a child's future.” 

The ACSI Children’s Tuition Fund will continue reviewing the regulations and communicating additional information to schools, families, and prospective contributors as implementation moves forward. 

About The ACSI Children’s Tuition Fund (CTF): 

Children’s Tuition Fund (CTF), a ministry of The Association of Christian Schools International (ACSI), exists to advance and resource educational freedom for parents who desire a Christ-centered education for their children. 

CTF works in partnership with schools, contributors, and parents to bless students by offering relationship-oriented financial assistance through these programs. CTF is also poised to facilitate the Federal Tax Credit Scholarship that will launch January 2027.  As a Scholarship Granting Organization, CTF works directly with contributors (both individuals and businesses) to process and approve tax credits. We aid schools in raising support and identifying qualified families within their community, and ultimately award scholarships to those families.