Education Freedom Tax Credit
Eligible Expenses
EFTC scholarships fund a defined list of K-12 educational expenses under federal law. Some are confirmed eligible by statute; others await final Treasury guidance.
Confirmed Eligible
What EFTC scholarships can pay for
Fees & Enrollment
- Public school fees: pay-to-play athletics, band, activity fees
- Course-specific fees (lab, art, technology, materials)
- AP and IB exam fees
- Dual and concurrent enrollment costs
- Standardized test fees (SAT, ACT)
Academic Support
- Private tutoring and learning centers
- In-school academic tutoring programs
- Test preparation programs
- Educational therapies for students with disabilities (occupational, behavioral, physical, speech-language)
- Specialized instruction (Orton-Gillingham, executive-function coaching, ABA)
Books, Supplies & Equipment
- Textbooks and curricular materials
- Calculators, lab equipment, art supplies
- Musical instruments
- Lab and project materials
Technology
- Laptops, tablets, Chromebooks for home use
- Home internet access and related services
- Educational software and subscriptions
Career & Technical Education
- CTE program tool kits, uniforms, and PPE
- Industry certification exam fees (ServSafe, CNA, OSHA-10, ASE, cosmetology, welding)
School-Provided Services
- Before- and after-school care and extended-day programs
- Summer school, credit recovery, and enrichment
- District-organized educational travel
- School transportation for special programs
- Required uniforms
Awaiting Final Rules
Pending Treasury guidance
Treasury Notice 2025-70 requested public comment on several open questions. Final regulations are expected in 2026 to 2027.
Off-site supplementary services
Whether afterschool and summer programs that occur off school grounds qualify under Bucket 2's supplementary-services language. Many commenters have urged Treasury to confirm eligibility.
The supplant question for public schools
Whether scholarships can pay public schools for services already covered by public funding. This is the most consequential open question for public-school participation.
School-level earmarking by donors
Whether donors can direct contributions toward a preferred school while leaving student selection to the SGO. The dominant interpretation permits school-level designation.
Treatment of corporate matching gifts
Whether employer matching programs are compatible with the dollar-for-dollar credit structure. Anti-double-benefit questions remain unresolved.
