The One Big Beautiful Bill Act, enacted on July 4, 2025 as Public Law 119-21, introduced a wide range of changes that will impact tax returns for the 2025 tax year and beyond.
Starting in tax year 2027, taxpayers will be able to claim a nonrefundable credit of up to $1,700 for contributions to scholarship granting organizations. Contributions must be made to nonprofit organizations that provide education scholarships to elementary and secondary students. These organizations must use the funds to support tuition, fees, and other education expenses at private schools.
In 2026, eligible schools will be identified, and the Treasury Department will issue additional guidance on claiming this credit.
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