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Issue Number:    IR-2025-115

Inside This Issue

Treasury, IRS request comments on implementation of the new federal tax credit for individual contributions to Scholarship Granting Organizations under the One, Big, Beautiful Bill

IR-2025-115, Nov. 25, 2025

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued Notice 2025-70, requesting comments on the implementation of a new tax credit for individuals established under the One, Big, Beautiful Bill. This new credit applies to contributions to Scholarship Granting Organizations that serve elementary and secondary school students from low- and middle-income families.

Beginning Jan. 1, 2027, individual taxpayers may claim a nonrefundable federal tax credit for cash contributions to SGOs providing scholarships for elementary and secondary education expenses. The credit allowed to any taxpayer is limited to $1,700. 

For contributions to an SGO in a State or the District of Columbia to be eligible for this credit, the State must first choose to participate by providing the IRS with a list of the SGOs located in the State that satisfy the SGO requirements.

Notice 2025-70 announces that Treasury and the IRS intend to issue proposed regulations and are currently seeking comments from interested parties on issues that should be addressed in the forthcoming regulations. Specifically, comments are welcomed on the following issues:

• A participating State’s required annual certification of SGOs within the State that meet the statutory requirements to qualify as an SGO;
• Policies and procedures implemented by electing States to ensure that the required certification is accurate and complete;
• Issues involving single-State organizations, organizations that may fundraise and award scholarships in more than one State, and organizations operating under other fact patterns that may wish to qualify as SGOs; and
• SGOs’ reporting and recordkeeping requirements.

Commentors are encouraged to use the Federal e-Rulemaking portal to submit comments (indicate “IRS-2025-0466”) by Dec. 26, 2025. Paper submissions should be sent to: Internal Revenue Service, CC:PA:01:PR (Notice 2025-70), Room 5503, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.

For more information, please see the One, Big, Beautiful Bill provisions page on IRS.gov. 

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