Last verified: October 2026
What is the federal scholarship tax credit that starts in 2027?
Starting January 1, 2027, a taxpayer can donate to an approved scholarship-granting organization and take a federal tax credit for the gift; some news reports label it the Education Freedom Tax Credit. Each state had to opt in first, and Florida's decision came on January 28, 2026.
It adds a donation channel to Florida's existing scholarships rather than replacing them.
Who will administer the credit in Florida?
Step Up For Students has said it intends to run Florida's program through a new affiliate nonprofit named the Step Up, Step Further Scholarship Fund. The Jewish Federation of Broward County's financial assistance guide already lists that fund as a new opportunity starting in 2027.
Application steps have not been published, so any website claiming exact award amounts is guessing.
Who would qualify as a student, and what could it pay for?
Reporting on the opt-in says student household income cannot exceed 300% of the area median income and that funds could pay for private school tuition, tutoring in public school and services for students with disabilities. The credit would be a second layer for a Broward family whose chosen school charges more than the $8,494 to $7,701 state award.
We will post the application steps here when Step Up publishes them.
How does the 2027 federal credit differ from the Florida Tax Credit Scholarship in Broward?
The federal credit goes to individual taxpayers beginning in 2027, while the Florida Tax Credit is the existing corporate-funded program.
| Federal credit (2027) | Florida Tax Credit (FTC) | |
|---|---|---|
| Who the credit goes to | Individual taxpayers | Florida corporations |
| Where the money lands | Approved scholarship organizations | Step Up and other approved organizations |
| Starts | January 1, 2027 | Already running |
| Student income cap | 300% of area median income | None under the 2023 expansion |