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New · 2027

Federal Scholarship Tax Credit (Education Freedom Tax Credit), starting 2027

Florida opted in on January 28, 2026. From 2027 taxpayers can direct part of their federal tax to a scholarship-granting organization, and Step Up plans to run Florida's program.

Last verified: October 2026

What is the federal scholarship tax credit and did Florida join?

The federal scholarship tax credit (also called the Education Freedom Tax Credit) is a 2025 federal law that lets taxpayers claim a credit for gifts to approved scholarship-granting organizations, and Florida's governor announced on January 28, 2026 that the state opted in. The program launches in 2027.

Step Up For Students has said it will establish a separate nonprofit, the Step Up, Step Further Scholarship Fund, to administer Florida's version.

How could the federal credit help a Jacksonville family next year?

It may become a second layer on top of the state award for a family whose chosen school charges more than $8,409, but Step Up has not yet published eligibility rules or award amounts, so no figure belongs on this page. Any number we saw quoted elsewhere is not something we can verify.

A family should keep applying for the state scholarship on the usual calendar; the federal credit does not replace it.

Can a Duval family combine Federal Scholarship Tax Credit with other funding?

Usually yes with school-based and diocesan aid, but a student holds only one Step Up scholarship at a time, so the combination is a layered plan and not two awards. Complete the funding check and an advisor maps the layers for your child.

Federal Scholarship Tax Credit: what it is and is not
QuestionIt isIt is not
What is it?A federal tax credit for donors, funding scholarshipsA new check from the IRS to families
Who runs it?State-approved scholarship organizationsThe school district
Is it live today?Starts in 2027Open for 2026-27 applications
Does it replace the state award?It would sit beside itA substitute for FTC/FES-EO

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