In 2026, Congress created a brand-new federal tax credit for donors who give to Scholarship Granting Organizations (SGOs) like Cornerstone. It's called the Education Freedom Tax Credit, and it's a separate benefit from Oklahoma's existing state credit — meaning, once it's fully in place, a single gift could qualify for both.
What the federal credit actually is
The Education Freedom Tax Credit (IRC §25F) is a nonrefundable federal income tax credit of up to $1,700 per year for individual taxpayers who make a qualifying cash contribution to an eligible SGO. It's dollar-for-dollar, just like Oklahoma's state credit — not a deduction. It takes effect for contributions made on or after January 1, 2027.
Oklahoma has opted in
States have to affirmatively opt in to the program before their SGOs can participate. Oklahoma was one of the first states in the country to do so — Governor Stitt filed the state's Advance Election in 2025, and as of late 2026, 31 states had opted in alongside Oklahoma.
The part that matters most: SGO certification is separate
This is the detail most summaries skip. Opting in at the state level makes Oklahoma SGOs eligible to participate — it doesn't automatically enroll any specific organization. Under the Treasury's regulations, each individual SGO has to separately register on an IRS portal and be certified, and the state has to list that specific SGO for federal purposes. That's a distinct process from the OTC approval that already makes an SGO eligible for Oklahoma's state credit.
In plain terms: Oklahoma opting in is necessary, but it isn't sufficient. Before you count on the federal credit for a specific gift, ask your chosen SGO whether it has completed federal certification for that tax year. Cornerstone intends to pursue certification for 2027, and we'll update this page once that's confirmed.
How the two credits would stack
Assuming your SGO is certified, a gift made in 2027 could potentially generate:
- An Oklahoma state tax credit of 50–75% of your contribution (same as today)
- A federal tax credit of up to $1,700 (individual filers), on the same contribution
That's two separate credits reducing two separate tax bills from one gift. The exact mechanics — especially for joint filers and any interaction with the state cap — are still being clarified in Treasury's regulations, which were only issued in final form in October 2026.
The bottom line
This is genuinely good news for Oklahoma donors, but it isn't live yet, and the fine print is still being written. Treat 2027 federal eligibility as "likely, pending confirmation" rather than guaranteed, and have your CPA double-check your specific situation before you file.