IRS Form 15714 – In the evolving landscape of federal tax incentives, the introduction of Section 25F of the Internal Revenue Code marks a significant development for educational funding. Enacted as part of the One, Big, Beautiful Bill in July 2025, this provision offers a nonrefundable tax credit to individual taxpayers for contributions to qualified Scholarship Granting Organizations (SGOs). However, for states to enable their residents to benefit from this credit, an advance election is required. Enter IRS Form 15714, a crucial tool for states aiming to participate in this program starting in 2027.
This guide breaks down everything you need to know about IRS Form 15714, including its purpose, eligibility requirements, filing process, and implications for taxpayers and states. Whether you’re a state official, tax professional, or curious taxpayer, understanding this form can help navigate the new federal scholarship tax credit landscape.
What Is Section 25F of the Internal Revenue Code?
Section 25F, added by Section 70411 of Public Law 119-21 (commonly known as the One, Big, Beautiful Bill Act), introduces a federal income tax credit for qualified contributions to SGOs. This nonrefundable credit is capped at $1,700 per taxpayer and targets support for elementary and secondary education expenses for students from low- and middle-income families—specifically those with household incomes below 300% of the area median gross income.
For contributions to qualify, SGOs must be tax-exempt under Section 501(c)(3), appear on a state’s list of eligible organizations, and meet additional statutory requirements. States play a pivotal role here: Only “covered states” that elect to participate can submit lists of SGOs, making their residents eligible for the credit. Without a state’s election, no SGOs in that state qualify, potentially limiting access to this educational funding incentive.
The credit becomes effective for contributions made on or after January 1, 2027, emphasizing the need for timely state action.
The Purpose of IRS Form 15714
IRS Form 15714, titled “Advance Election to Participate Under Section 25F for 2027,” allows states (including the District of Columbia) to declare their intent to participate in the Section 25F program ahead of submitting their official SGO lists. This advance election addresses a practical timing challenge: States need to inform potential SGOs of participation before finalizing and submitting the list, enabling better preparation and coordination.
According to Revenue Procedure 2026-6, this form provides the exclusive method for making such an election for the 2027 calendar year. By filing, a state commits to providing a list of certified SGOs that meet the requirements, ensuring taxpayers can claim the credit for eligible contributions.
Key details from the form include:
- Part I: State Identification – Requires the state’s name, a point of contact, email, and telephone number.
- Part II: Election Statement – A formal declaration of election for the period from January 1, 2027, to December 31, 2027.
- Acknowledgment – The state must confirm its obligation to submit the SGO list with required certifications.
The form emphasizes that “State” refers exclusively to one of the 50 U.S. states or the District of Columbia.
Who Should File IRS Form 15714?
This form is specifically for state governments or authorized representatives making the advance election. It’s not intended for individual taxpayers, SGOs, or other entities. States interested in enabling the Section 25F credit for their residents should file if they plan to submit an SGO list for 2027.
Filing is optional but essential for participation. A state that skips the advance election can still elect later when submitting the SGO list, but the advance option allows earlier notification to SGOs, potentially streamlining the process. Future IRS guidance will detail procedures for subsequent years and non-advance elections.
How to File IRS Form 15714: Step-by-Step Guide?
Filing is straightforward but must adhere to IRS guidelines to avoid rejection. Here’s how:
- Download the Form: Access Form 15714 and its instructions from the official IRS website at irs.gov.
- Complete the Form: Fill in all required fields, including state details and the election statement. No alterations or alternative methods are accepted.
- Submission Window: Submit on or after January 1, 2026, but before the final deadline for the SGO list (to be specified in future IRS guidance). For 2027, the SGO list is due by January 1 or as soon as practicable.
- Method of Submission: Follow the instructions on the form for electronic or mail submission. The IRS will acknowledge receipt.
- Perfection Requirement: After filing, the state must “perfect” the election by submitting the SGO list with all certifications by the specified deadline. Failure to do so invalidates the election, disqualifying all SGOs in that state for 2027.
Tax professionals advising states should verify compliance with Revenue Procedure 2026-6 to ensure a smooth process.
Deadlines and Key Dates for 2027
- Form Availability: Released in December 2025.
- Filing Start Date: January 1, 2026.
- Filing End Date: Before the SGO list submission deadline (expected January 1, 2027, or as specified).
- Credit Effective Date: January 1, 2027.
States should monitor IRS updates for any changes, as additional guidance on SGO lists and certifications is forthcoming.
Implications and Benefits of Filing
By filing Form 15714, states unlock access to the federal scholarship tax credit, potentially increasing donations to SGOs and expanding educational opportunities for underserved students. This could broaden scholarship availability, as SGOs gain clarity on participation early.
For taxpayers, residing in a participating state means potential tax savings of up to $1,700 on qualifying contributions. Tax pros should advise clients to confirm their state’s status before planning 2027 contributions.
Non-participation means no credit eligibility for that state’s residents, which could influence state policy decisions on education funding.
Conclusion: Preparing for the Section 25F Tax Credit
IRS Form 15714 represents a key step in implementing the innovative Section 25F tax credit, fostering greater support for K-12 education through private contributions. As states weigh participation, timely filing ensures residents can take full advantage starting in 2027. Stay informed through official IRS channels, and consult with tax experts for personalized guidance.
For the latest updates, visit the IRS website or review Revenue Procedure 2026-6. This new credit has the potential to transform educational access—don’t miss out on understanding its rollout.