On Dec. 12, the IRS issued Rev. Proc. 2026-6, which establishes procedures for state Governors to make an Advance Election to opt-in to the new Federal Tax Credit Scholarship Program.
Opting-in just means that donated funds will be allowed to remain in their state. If any state chooses not to opt-in, it doesn’t stop donations from their citizens to qualified SGOs outside of their state administering the program, it just means that those donations can’t be used for students residing in their states.
States making the Advance Election must file Form 15714 between Jan. 1, 2026, and the deadline for submitting their SGO lists. AAA urges all Governors to opt-in to the Federal Tax Credit Scholarship Program so that qualifying students in their states may benefit.
By law, the authorized uses for the Federal Tax Credit Scholarship program are the same as those allowed by the existing Coverdell ESA program for eligible elementary or secondary education expenses. An eligible elementary or secondary school is any public, private, or religious school that provides elementary or secondary education (kindergarten through grade 12), as determined under state law.