Federal Scholarship Tax Credit in Tennessee: What Christian School Families Need to Know

Tennessee is one of 30 states taking part in the Federal Scholarship Tax Credit for 2027 (IRS list, September 14, 2026). From January 1, 2027, taxpayers can donate up to $1,700 to a listed Scholarship Granting Organization (SGO) and claim a dollar-for-dollar federal tax credit; the SGOs turn those donations into scholarships that help eligible students pay for Christian school tuition and other education expenses. Find Christian Schools lists 281 Christian schools in Tennessee.

Is Tennessee Participating?

Yes. Tennessee made an advance election to participate in the Federal Scholarship Tax Credit (§25F) for 2027, on the IRS list dated September 14, 2026. States file their election with the IRS (Form 15714) and must also submit their list of qualifying SGOs. More states can still elect to join for 2027 until January 1, 2027, so this list can grow.

Source: IRS, Federal Scholarship Tax Credit page (participating states for 2027, as of September 14, 2026).

How the Money Reaches a School

A donor gives to an SGO on Tennessee's official list and claims the federal credit. The SGO awards scholarships to eligible students. The student brings the scholarship to the school they attend — schools do not "accept the credit" themselves, and no school applies to the IRS. Eligibility follows the student, not the school: under the proposed regulations, a student who lives in a participating state can use a scholarship at an eligible school even if that school is across the state line in a state that has not opted in.

Christian Schools in Tennessee

Find Christian Schools lists 281 Christian schools in Tennessee, compiled from the NCES Private School Survey 2023–24. Scholarships can be used at eligible K–12 schools; a school's listing here does not by itself guarantee scholarship eligibility — the SGO awarding the scholarship confirms the details.

See all 281 Christian schools in Tennessee

SGOs Serving Tennessee

Tennessee must submit its list of qualifying Scholarship Granting Organizations to the IRS by February 15, 2027, and the IRS will publish the combined list. Only donations to SGOs on that official list qualify for the credit. This section will be updated with Tennessee's SGOs the week the list lands.

Am I Eligible?

Students from households earning up to 300% of the area median gross income, who are eligible to enroll in K–12 school and live in a participating state, can receive scholarships. Funds can cover tuition, fees, tutoring, books, curriculum materials, special needs services, technology, and transportation. Donors can live in any state — only the student's state of residence must participate.

Key Dates

On October 2, 2026, the U.S. Treasury Department and the IRS published temporary regulations (T.D. 10057) and proposed regulations (REG-117199-25) for the credit in the Federal Register. The temporary regulations are in effect; the proposed regulations are not yet final, though taxpayers, states, and SGOs may rely on them for 2027 contributions.

Frequently Asked Questions

Is Tennessee participating in the Federal Scholarship Tax Credit?

Yes. Tennessee is one of 30 states that made an advance election to participate for 2027, per the IRS list dated September 14, 2026. The credit applies to qualifying donations from January 1, 2027.

How many Christian schools are in Tennessee?

Find Christian Schools lists 281 Christian schools in Tennessee.

When will Tennessee's Scholarship Granting Organizations be announced?

States must submit their SGO lists to the IRS by February 15, 2027. Only donations to SGOs on that list qualify for the credit.

How much can I donate in Tennessee and claim as a credit?

Individual taxpayers can donate up to $1,700 per year to a qualified Scholarship Granting Organization and claim a dollar-for-dollar, nonrefundable federal tax credit, no matter which state they live in. Under the U.S. Treasury's October 2026 proposed regulations (not yet final), married couples filing jointly can donate up to $3,400. The $1,700 figure is the donor's credit limit — it is not the scholarship amount a student receives.

Can a Tennessee student use a scholarship at a school in another state?

Yes, under the proposed regulations: eligibility follows the student's home state, so a student who lives in Tennessee can use a scholarship at an eligible school across the state line, even in a state that has not opted in.

For Schools in Tennessee

If you run a Christian school in Tennessee, make sure your listing is claimed and accurate before scholarship families start searching in January 2027: claim or submit your school's listing — free.

Last updated: October 20, 2026. Sources: IRS Federal Scholarship Tax Credit page; Federal Register, T.D. 10057 and REG-117199-25 (published October 2, 2026); school counts from Find Christian Schools' own listings (NCES Private School Survey 2023–24).