Agudath Israel of America applauds Virginia Governor Glenn Youngkin and Iowa Governor Kim Reynolds for wasting no time and officially opting in their state to take advantage of the new federal scholarship tax credit.
While the $1700 tax credit can only be taken starting in 2027, the IRS is allowing states to opt in now so that scholarship granting organizations can apply to the state for approval. Nearly all children in each state will be eligible to receive a scholarship that can be used on wide range of eligible educational expenses including tuition at a Jewish school.
Although the IRS hasn’t created the necessary online portal to allow states to submit approved SGOs, Governor Youngkin submitted to Treasury a list of tentatively eligible SGOs including the Torah Education Scholarship Fund that will serve all eligible students wishing to attend Jewish schools in Virginia.
“Opting in to the federal scholarship tax credit right away sends a strong message to families that these governors want to improve the educational opportunities of every child in their state,” said Rabbi A. D. Motzen, Agudath Israel of America’s national director of government affairs. “While other governors have expressed interest in opting in later in the year, we encourage all states to officially opt in as soon as possible so that scholarship organizations, donors, educational providers and parents can be best prepared for a successful tax credit launch in 2027.