Internal Revenue Service · issued November 25, 2025
Notice 2025-70 — Request for Comments on §25F Implementation
(purpose)Purpose
The Treasury Department and the Internal Revenue Service announced their intent to issue forthcoming proposed regulations implementing §25F (the Federal Scholarship Tax Credit). Notice 2025-70 requested public comment on issues that should be addressed in those regulations.
“Treasury and the IRS are seeking comments on issues that should be addressed in the forthcoming regulations.”
(topics)Topics on which comments were requested
(1)State election and certification
- How participating States must annually certify scholarship granting organizations (SGOs) that meet statutory requirements
- State policies and procedures to ensure certification accuracy and completeness
- How “located in the State” should be defined for SGOs
- What State tax credit offset information should be reported to the IRS
(2)SGO operations and the 90% requirement
- Operational issues for single-state and multi-state SGOs with varying organizational structures
- Whether the 90% spending requirement should apply state-by-state or in aggregate
- Rules for donors who do not designate a specific State
- Application of eligibility requirements across multiple states
(3)Recordkeeping, reporting, and verification
- SGO reporting and recordkeeping obligations
- Income verification methods for the 300% area median income eligibility threshold
- Fund segregation requirements and documentation
- Donor notification requirements regarding credit limits and deductions
(comment-period)Comment period
The comment period closed on December 26, 2025. Comments were submitted via the Federal e-Rulemaking portal at regulations.gov (identifier IRS-2025-0466) or by mail to the Internal Revenue Service, CC:PA:01:PR (Notice 2025-70), Room 5503, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.
Treasury’s next step is to issue proposed regulations incorporating feedback from the comment period. Those regulations are expected ahead of the program’s January 1, 2027 launch and will be added to this documents hub when published.