Last verified: October 2026
What is the federal scholarship tax credit that starts in Florida in 2027?
Created by the 2025 reconciliation law and sometimes labeled the Education Freedom Tax Credit, it lets a taxpayer claim up to $1,700 for gifts to a scholarship organization beginning January 1, 2027.
States had to choose to take part. Florida opted in on January 28, 2026, and Step Up For Students said the state's version would run through a separate nonprofit, the Step Up, Step Further Scholarship Fund.
Will the federal credit help an Orlando family pay private school tuition?
It might, as an extra layer, because students in households at or below 300% of area median income would be eligible for these scholarships. As of October 28, 2026, award sizes and the application had not been announced.
Until the steps appear, the sensible plan is to rely on the state scholarship for 2026-27 and return to this page when the federal application opens.
State scholarship vs the federal credit
The table puts the two sides next to each other.
| Florida Private School Scholarship | Federal credit scholarship | |
|---|---|---|
| Starts | Open now for 2026-27 | January 1, 2027 |
| Income | No cap | 300% of area median income or less |
| Funded by | State dollars and Florida tax-credit donors | Donors claiming a federal credit |
| Application | Through Step Up or AAA | Details not yet published |