Alaska put the first date on the board: it means to approve its first SGOs by September 30, before Treasury's rules publish

Thirty states have completed the advance election for the Education Freedom Tax Credit (also called the Federal Scholarship Tax Credit, ECCA, or §25F), and almost all of them are waiting on Treasury before they certify anyone. Two are not. Kentucky moved first, on July 22, when Secretary of State Michael Adams signed a regulation opening the state’s SGO declaration process, the mechanism KRS 14.125 makes his office use to build the list Kentucky owes Treasury. On August 20, 2026, Alaska became the second state to open a door, and added the thing Kentucky has not: a date by which it intends to walk people through it.

Gov. Mike Dunleavy announced that the state is now accepting applications from nonprofit organizations seeking approval as K-12 Scholarship Granting Organizations, with the Department of Education and Early Development running the process. The application is deliberately small. An organization submits two things: a letter of interest signed by an authorized representative, and a copy of its IRS 501(c)(3) determination letter. The letter of interest has to attest that the organization meets, and will continue to meet, all applicable federal requirements for Scholarship Granting Organizations under §25F and any implementing federal regulations or guidance. Both go to SGO@alaska.gov. There is no form, no fee, and no filing window; applications are evaluated on a rolling basis.

The timing is the part operators should read twice, because it is what actually separates Alaska from Kentucky. Alaska says it expects to approve its first group of SGOs by September 30, 2026, and describes that as being consistent with the forthcoming regulations from Treasury and the IRS. Those regulations are themselves expected by the end of September. So Alaska has set its first approval date against a rule that does not exist yet, and bridged the gap with the attestation: an approved organization is one that has certified in writing that it complies with the federal requirements, whatever their final text turns out to say. That is why the release adds that an approved SGO may rely on the state's approval and begin building, “subject to its continuing compliance with applicable federal requirements.” Approval in Alaska is a place on a list, not a safe harbor against the rules Treasury has yet to write.

What an approved Alaska SGO gets is real, and it is bigger than Alaska. Beginning January 1, 2027, an individual taxpayer may contribute to an approved SGO and take a dollar-for-dollar federal income-tax credit of up to $1,700, and the state's own announcement is explicit that this is open to taxpayers “in Alaska and across the country.” That is the asymmetry we walked through recently: donors can live anywhere, scholarships cannot. An Alaska-listed organization can raise from a donor in any state, including states that have declined to participate, and every one of those dollars must then fund scholarships for Alaska students. For an organization with a national donor base and an Alaska mission, being early on a list that exists is a genuine head start.

The state also used the announcement to answer the question most organizations ask first, which is who this is for. Alaska's framing is that SGOs may take different forms: some will partner with a particular school or group of schools, others will work with education providers, serve a region or a particular educational need, or take applications from eligible students statewide regardless of where they learn. Commissioner Deena Bishop put the public-school half of that plainly, saying the program “can help a public school offer something that otherwise might remain beyond reach.” The federal rules the release restates are the familiar ones: at least ten students who do not all attend the same school, and at least 90% of the organization's income spent on scholarships. It also makes the point that the $1,700 cap binds the donor and not the award, because an SGO pools contributions from many taxpayers, so individual scholarships may be considerably larger.

It is worth noting how far this is from where Alaska stood in January. When Dunleavy made the state's executive advance election, the state had no scholarship organizations and no announced plan to build any, and within days NEA-Alaska argued the move ran into the state's constitutional no-aid clause. That dispute is unresolved and this announcement does not settle it; Bishop's position then and now is that §25F moves private charitable dollars rather than public funds. What has changed is that Alaska has gone from the state with the least infrastructure on the roster to one of only two with an open door, and the release cites an analysis putting roughly 95% of Alaska's K-12 students within the eligibility ceiling, consistent with the first state-by-state estimates published in July.

For anyone organizing, the practical read is that the runway just got shorter in one state and is about to get shorter everywhere. If you are building an Alaska organization, the gating item is now your 501(c)(3) determination letter, because you cannot attest to federal compliance you have not organized for; our free SGO builder walks formation through that step. If you are building elsewhere, treat Alaska's two-document application as a preview of what a state list actually asks for, and have the answer ready when your state opens. Check where your state stands on the participation map, read how to start an SGO, and see who is already organizing in the SGO directory.

Correction, August 25, 2026: this piece originally called Alaska the first state to open an SGO application process. That was wrong. Kentucky opened one on July 22, 2026, when Secretary of State Michael Adams signed a regulation establishing procedures for submitting, reviewing, and processing SGO filings, with a declaration form open to confirmed 501(c)(3) public charities. We had drawn a distinction between Kentucky’s “state-level” declaration and a federal one, and the statute does not support it: KRS 14.125 makes the Secretary of State the sole official authorized to submit the list described in 26 U.S.C. §25F(g) and requires him to send it to Treasury by January 1 of each year, so the declaration process is how Kentucky builds its federal list. What is accurate, and is the point of this piece, is that Alaska is the first state to commit to a date for approving its SGOs. Kentucky opened the door first; Alaska was first to say when it would walk people through.