Everything in stages 1 through 3 can be true and your donors still get no credit: §25F only flows through organizations on the list a participating state submits to the IRS. As of our last data update (2026-10-01), 30 states are opted in on our tracker (the IRS posts its own official roster, which trails announcements; see how the federal SGO list works for why the counts differ).
Some of these rules are proposed, not final. Treasury released the §25F regulations on October 1, 2026, in two parts. The temporary regulations are binding rules, not proposals, and apply from September 1, 2026: registering in the IRS SGO portal, donor acknowledgments and IRS reporting, and how states build their SGO lists. Most of the rest, including the 85% safe harbor, the details of the 90% test, income verification, payment rules, disqualified persons, and the annual certification and audit, comes from the proposed regulations. Taxpayers, SGOs, and states may rely on those for 2027 contributions if they follow them in full, but comments are open until December 1, 2026 (hearing December 15) and the final rules could change them. Items tagged Proposed rule rest on that part; we re-verify each one when the final regulations publish, and our news feed tracks every change.
The steps
Your state posture was set in stage 1. Participating: assemble the vetting binder from your stage 1-3 paperwork and file with your state the moment its window opens (Kentucky's opened July 22, 2026). For 2027, states submit their lists to the IRS by February 15, 2027. Under Treasury's temporary regulations, a state must list every organization located there that applies and meets the federal tests and its application requirements, and may not impose requirements stricter than §25F's; "located in" means authorized to do business there and following its charity laws, so an out-of-state SGO can qualify (it then funds students who live in that state). Not yet participating: operate as a normal scholarship charity, seek listing in a participating state, and never promise the credit early.
0/3 insideStep-by-step guide →Live state opt-in trackerHow the governor opt-in worksOne national standard for SGOs
The state election and the SGO list repeat every year; each election covers one calendar year. Getting listed once is not permanent status: this year's compliance records, audit, and certification are next year's application. A state cannot add organizations after its list deadline (late additions wait for the next year's list), and it can remove you only through a procedure that gives you due process.
0/1 insideStep-by-step guide →Required of every organization that plans to solicit §25F gifts, under Treasury's temporary regulations (binding rules that apply from September 1, 2026): register electronically "as soon as possible and preferably before" you appear on any state list. You give your name, EIN, address, phone, year of formation, tax year, and a contact who can legally bind the organization (or who holds a Form 2848 power of attorney). Registration gets you the uniform donor-number format and is how you authorize your name on the IRS SGO list; without it you cannot issue the acknowledgments donors need for the credit. The IRS has not opened the portal yet.
0/2 insideStep-by-step guide →
Do you have schools to send students to?
§25F requires you to award scholarships to ten or more students who do not all attend the same school, so a program with one participating school cannot qualify no matter how well it is run. Schools have begun registering as willing to enroll students funded by the credit, and the count for your state is below.
Frequently asked questions
My state hasn't elected. Is forming an SGO pointless?
No. You can form and operate a scholarship charity under ordinary 501(c)(3) law today, and a state can still make its first-year election for 2027 until January 1, 2027 (and every year after that). Under Treasury's temporary regulations you can also become “located in” a participating state by registering to do business there and following its charity laws, then seek its list; you would fund students who live in that state. What you cannot do is promise donors the federal credit until a participating state lists you.
How does my organization actually apply to be listed?
Through your state. Each participating state runs its own application; Kentucky's Secretary of State opened the first one on July 22, 2026, and the guide below shows your state's current posture. Treasury's temporary regulations (binding rules that apply from September 1, 2026) set the federal frame: a state must require applications, documents, and financial reports reasonably tailored to the federal tests and fraud prevention, but may not impose rules more restrictive than §25F's, such as limiting which schools or expenses scholarships can cover. It must include every organization located in the state that seeks a place on the list and qualifies. For 2027, states that filed the advance election (due January 1, 2027) submit their lists to the IRS by February 15, 2027. Separately, register in the IRS SGO portal as soon as it opens, preferably before you appear on any list.
Is being listed permanent?
No. Each state election covers one calendar year, and the SGO list is submitted every year. Staying qualified and re-appearing on the list every year is part of running an SGO. Under the temporary regulations, a state must honor your own request to come off its list, and it can remove you only through a procedure that gives you due process.
Can we be on more than one state's list?
Yes, if you are located in each state (authorized to do business there and following its charity laws). Under Treasury's proposed regulations, an SGO on two or more lists is a multistate SGO: at least 85% of its activities must be scholarship granting, it keeps a separate §25F account for each state, lets donors choose how their gift is split among those states, and meets every operating test, including the 90% test and the 10-student minimum, separately for each state's account. Each state's scholarships go to students who live in that state.
Our 501(c)(3) application is still pending. Can we be listed for 2027?
Possibly. Under the temporary regulations, a state may list organizations whose exemption applications are pending if it lists every pending applicant that seeks inclusion, marks them as pending, and certifies that each one's exemption, if granted, will take effect on or before January 1 of the list year. Exemption generally reaches back to your formation date when you file within 27 months, so an organization aiming at a 2027 list should be incorporated by January 1, 2027. The IRS adds a pending organization to its SGO list once the exemption is recognized.
