Last verified: October 2026
What is the federal scholarship tax credit?
It is a dollar-for-dollar federal income tax credit, capped at $1,700 per taxpayer, for donations to approved scholarship-granting organizations, taking effect for tax years ending after December 31, 2026.
Those gifts pay for scholarships for students whose household income is no more than 300% of their area's median. States had to opt in, and Governor DeSantis announced Florida's participation on January 28, 2026.
Who will run it in Florida?
Step Up For Students said it will administer the program through a separate nonprofit it is forming, the Step Up, Step Further Scholarship Fund.
In July 2026 Step Up also announced a partnership with the AFC Scholarship Fund around the credit, which it calls the Education Freedom Tax Credit. Application details for families had not been published when we last checked.
Why does it matter to a Pinellas family?
Because it can sit on top of the state award, it may help close the gap at a school that charges more than $8,643.
We will add the family application steps once Step Up publishes them; the funding check flags households likely to fall under the income line.
The 2027 federal credit compared with the existing Florida scholarship
| Feature | Federal credit (2027) | Florida Private School Scholarship |
|---|---|---|
| Income test | At or below 300% of area median income | None |
| Funded by | Donors claiming a federal credit | State budget and state tax credits |
| Status | Launches 2027 | Paying now |