(The Center Square) – Virginia families could receive scholarships for tuition, tutoring and other education expenses through a new federal tax credit program in 2027, provided the commonwealth completes the participation requirements.

The Treasury Department and IRS released proposed regulations and companion temporary regulations Thursday outlining how the program would operate.

The IRS lists Virginia among states that have made an advance election to participate in the Federal Scholarship Tax Credit for 2027. Participation also requires submitting a list of qualifying scholarship organizations.

The governor’s office told The Center Square Thursday that the administration is reviewing the new federal regulations.

“As the parent of three school-aged daughters, Governor Spanberger remains committed first and foremost to protecting and supporting Virginia public school students, teachers, and parents, and setting kids up for life-long success,” a statement from her office said.

The response did not specify whether Virginia has submitted its list of qualifying scholarship organizations or provide a timetable for doing so.

Beginning Jan. 1, individual donors could receive an annual federal tax credit of up to $1,700 for qualifying contributions. Married couples filing jointly could claim up to $3,400, with each spouse making their own qualifying contributions.

For 2027, participating states must submit their lists of scholarship organizations and required certifications by Feb. 15.

Leslie Hiner, senior adviser for legal policy at EdChoice, a school choice advocacy organization, told The Center Square that multiple Virginia scholarship organizations have been preparing for the program for almost a year.

“This is a huge advantage, and those SGOs should be praised for this work,” Hiner said.

She said Virginia’s next step would be submitting its list of scholarship granting organizations through the federal portal.

National surveys conducted by Morning Consult for EdChoice in June, July and August found 64% of adults and 77% of school parents supported their state participating after receiving a description of the federal tax credit. Forty percent of adults said they had heard nothing about the program.

Scholarship granting organizations are qualifying charities that collect donations and award education scholarships. Federal law requires them to spend at least 90% of their income on scholarships and serve at least 10 students who do not all attend the same school.

They must also verify applicants’ household income and family size. Contributions cannot be earmarked for a particular student.

Students must be eligible to enroll in a public elementary or secondary school and have prior-year household income no higher than 300% of area median gross income, adjusted for family size.

Qualified expenses include private school tuition, tutoring for public school students, special education services, books and supplies. Eligibility does not guarantee an award. Scholarships depend on available funding and the organizations’ decisions.

Virginia already operates a separate Education Improvement Scholarships Tax Credits program. It provides state tax credits equal to 65% of qualifying donations to approved scholarship foundations, with a $25 million annual cap on credits.

Under the new federal program, state tax credits for the same qualifying contributions reduce the amount eligible for the federal credit.

The federal credit is nonrefundable, meaning it can reduce income tax owed to zero but does not pay out any excess as a refund. Unused credit may be carried forward for up to five years.