Federal Scholarship Tax Credit Regulations: Comprehensive Technical Analysis of Temporary TD 10057 and Proposed REG-117199-25 Under Section 25F

The useful part

Federal Scholarship Tax Credit, Temporary Regulations, TD 10057, RIN 1545-BS17, 91 Fed. Federal Scholarship Tax Credit, Notice of Proposed Rulemaking and Notice of Public Hearing, REG-117199-25, RIN 1545-BR97, 91 Fed. This statutory credit was enacted by Section 70411 of Public Law 119-21, 139 Stat.

How it works

• This technical article provides tax practitioners—CPAs, Enrolled Agents, and tax attorneys—with an exhaustive analysis of the regulatory framework.
• 72 (July 4, 2025), commonly known as the One, Big, Beautiful Bill Act (OBBBA).
• Published pursuant to the mandatory cross-referencing requirement of Code Section 7805(e)(1), the temporary and proposed regulations establish binding guidelines for individual contributors, SGOs, and...

Details worth keeping

On October 1, 2026, the Department of the Treasury and the Internal Revenue Service released a comprehensive regulatory package implementing the new nonrefundable Federal Scholarship Tax Credit under Internal Revenue Code (Code) Section 25F. Section 25F allows individual taxpayers a nonrefundable tax credit of up to $1,700 annually for qualified cash contributions made to certified scholarship granting organizations (SGOs) in taxable years ending after December 31, 2026.