Oct. 9, 2026
DEEP DIVE: Unpacking Treasury’s Proposed Regulations for the Federal Scholarship Tax Credit
On 10/2/26, the U.S. Department of the Treasury and the Internal Revenue Service published long-awaited proposed regulations implementing the new section 25F of the Internal Revenue Code, also known as the Federal Scholarship Tax Credit (FSTC). EducationCounsel developed this resource to unpack the most significant provisions in the proposed regulations that will affect the implementation of the FSTC, particularly regarding its uses for public school students. It also flags several issues where the proposed regulations are unclear or raise new important questions.
Note that the proposed regulations are subject to a 60-day comment period, with comments due here on 12/1/26. Although they are technically “proposed,” the regulations will govern the FSTC program initially as it goes into effect on 1/1/27. They will remain in effect until Treasury issues final regulations with a new effective date, which will not likely be before 1/1/28.
Click here to access the resource and click here to download a PDF version.