For advisors and community leaders
A new credit worth a conversation.
Section 25F lets your clients and congregants direct part of their federal income tax to K–12 scholarships in Tennessee.
The credit in brief.
Up to $1,700 per person
Each spouse on a joint return can claim up to $1,700 from their own gift, for up to $3,400.
Nonrefundable
Limited to the taxpayer's federal income tax; unused credit carries forward up to five years.
Starts January 1, 2027
For cash gifts made on or after that date to an SGO on a participating state's list.
Any state, any income
Donors anywhere in the U.S. can give to a Tennessee SGO. The credit doesn't phase out by income.
No double benefit
Dollars that earn the credit can't also be deducted; amounts above the limit may be.
Substantiation
The SGO issues a written acknowledgement with a unique donor number by January 31; the donor files Form 8525.
Primary sources.
For practitioners who want to read the rules directly.
- 26 U.S.C. § 25F (statute text)
- IRS: Federal Scholarship Tax Credit (participating states and guidance)
- Tennessee Department of Education announcement (October 7, 2026)
Treasury and IRS issued temporary and proposed regulations (TD 10057 and REG-117199-25) in October 2026. Taxpayers may rely on the proposed rules for 2027 contributions; final rules may differ.
For imams and masjid boards.
We'll help you share this opportunity with your community in a way that fits your gatherings.
Friday announcement
A short script and a QR-code flyer pointing to our donor page.
Community session
A 30-minute talk for families and donors, in person or online.
Giving season kit
Materials timed for Ramadan and year-end giving before December 31.