Federal Scholarship Tax Credit (2027)

What is the federal scholarship tax credit that starts in 2027, and does Florida take part?

Florida takes part: Governor Ron DeSantis announced on January 28, 2026 that the state opted into the federal education tax credit, which begins on January 1, 2027. The credit lets a contributor receive a federal tax credit of up to $1,700 per year for gifts to approved scholarship organizations.

Step Up For Students has announced that it expects to run Florida's version through an affiliated nonprofit, the Step Up, Step Further Scholarship Fund.

Which Palm Beach County students will qualify for the federal credit scholarships?

Families must not earn more than 300% of area median income, according to Florida press coverage of the announcement. Permitted uses include private school tuition, public school tutoring and support services for students with disabilities.

Application steps, award sizes and dates had not been published when this page was verified, so there is nothing for a family to submit yet.

How would the federal credit fit with Florida's existing scholarships for a Palm Beach family?

Press coverage describes the federal program as a supplement to Florida's existing scholarships, so it is most likely to matter for a family whose school charges more than the $8,890 K-3 award. How the two programs will combine has not been spelled out.

We will add the steps when Step Up publishes them. In the meantime the funding check will tell you which of today's programs apply.

What is the federal credit, and what is it not?

The short version: a federal tax credit for donors to approved scholarship organizations, and not a tax deduction or refund for tuition a parent pays.

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