Public Law 119-21, title VII · enacted July 4, 2025
§70411(c), Effective Dates
(c)Effective dates
(1)In general (§25F)
(2)Exclusion from income (§139K)
Plain English: The federal scholarship tax credit (§25F) is claimable on tax returns covering any portion of 2027 and later. The income exclusion for scholarships (§139K) covers scholarship dollars received on or after January 1, 2027. The first donations eligible for the credit are those made on or after January 1, 2027; the first scholarships paid out under §25F also begin on that date.
Note, October 1, 2026: Treasury’s rules follow these dates. Taxpayers, SGOs, and states may rely on the proposed regulations for qualified contributions made on or after January 1, 2027, until final regulations are published. The temporary regulations apply earlier, from September 1, 2026, which covers the state elections and SGO lists for 2027; they expire October 1, 2029.
