“Scholarship groups should prepare for compliance now, tax pro says”

Richard Lieberman was quoted in the Reuters article, “Scholarship groups should prepare for compliance now, tax pro says,”discussing new federal regulations implementing the scholarship tax credit under Internal Revenue Code Section 25F. Lieberman emphasized the importance of scholarship-granting organizations establishing compliance systems ahead of the credit’s January 1, 2027, effective date.

He highlighted key requirements, including restrictions on scholarship recipients, the mandate to allocate at least 90% of income toward scholarships, and the challenges of managing administrative costs. Lieberman also discussed strategies for forming separate entities, maintaining compliance across multiple states, and preparing for state participation requirements.