Federal tax-credit scholarship program to fund private school and homeschooling in over 30 states

Proposed regulations released Thursday create the Federal Scholarship Tax Credit, a national school-choice program slated to begin on Jan. 1. Taxpayers who give up to $1,700 to a participating state scholarship entity can claim a matching federal credit, and married couples may double that amount. The program will be available in more than 30 states, covering roughly 96 % of children there, and will allow funds for private-school tuition, homeschooling expenses, tutoring, special-education therapies, books and computers.

Eligibility extends to students from kindergarten through high school whose families earn up to three times the area’s median income, with simplified proof for low-income families and foster children. States decide whether to join; while many Southern and conservative-led states have signed on, several governors have declined, citing concerns about public-school resources. Officials project the scheme could eventually channel about $26 billion each year to 2.2 million scholarships.