Its chair Lord Smith's also recommending the voting age in Scotland should be lowered to 16.
David Cameron tweeted that he was 'delighted' with the report.
Labour leader Ed Miliband says the report is potentially the first step towards a big change in the way political decisions are made across Britain.
The Free Church of Scotland today welcomed some of the recommendations from the Smith Commission report, James Fraser CBE, chairman of the Free Church's Board of Trustees and former Principal of the University of the Highlands and Islands, commented: "We are pleased that the Smith Commission is recommending that young people aged 16 and upwards be able to vote in future Scottish elections.
"This was an interesting by-product of the referendum debate, and it is excellent that it will now become a permanent feature of politics in Scotland.
"It will hopefully go a considerable way to maintaining the momentum of the political debate and ensuring that young people at an early age are given the opportunity to value and participate in democratic politics."
The Free Church of Scotland also welcomed news that abortion could soon be devolved to Holyrood, and that a process is being established immediately to consider the matter further.
Mr Fraser added: "We are also pleased that the Smith Commission has put the devolving of abortion powers on the table.
"We are completely at a loss to think of any good reason for devolving health on the one hand, but reserving abortion policy on the other.
But newly-appointed Deputy First Minister John Swinney doesn't think it goes far enough, he said: "the proposals however, do not include the job creating powers that Scotland so badly needs to get more people into work and to grow the economy, nor the welfare powers that are necessary to tackle in-work poverty."