Steel I would go with the 17/64
Aluminum I would go with the 13/64
I usually go with what's marked on the tap and that can vary by the manufacturer. But I also refer to a Starrett drill and tap chart that gives decimal sizes and recommendations. When in doubt I go one size smaller and use lots of tap magic cutting oil.
Greg, I am going to say up front, I am NOT a machinist, but have been doing my own stuff since '79 when a machine shop moved in next door to my cabinet shop and told me if I needed anything, they would let me use any unused machine that was available. I don't want to start a fight on this, but your info is not correct. Steel or aluminum does not change the sizes needed for a 1/4-20 thread, male or female.
I am also using a Starret, a Dormer and an OSG chart for any size required to thread anything. The hole needed for a proper thread in Steve's case is a #7 bit which is 0.2010" or 13/64" is 0.2030" that is listed in the charts I have. The extra .002" probably gives the tap a little wiggle room rather than the having the tap actually cutting the hole diameter needed.
All my 1/4" taps are made in the USA, and are 0.255" OD. The 17/64" is for the bolt clearance hole at 0.265", not for tapping.
The difference between 13/64 and 17/64 is 1/16" or .064". It is also .012" larger than the .250 bolt size. ......... Jerry (in Tucson)