Federal Tax-Credit Scholarships
Education Freedom Tax Credit
Federal scholarships for K-12 students, at no cost to your school. See which states participate, check income eligibility by county, and build a personalized advocacy kit.
Interactive Tools
Everything you need to act on EFTC
Income Eligibility Calculator
Check whether your families qualify by county income.
School Readiness Assessment
Assess your school's readiness across 6 domains.
State Status Map
Track which states have opted in to EFTC.
Advocacy Kit Builder
Build a free kit if your state has not opted in yet.
Donor Credit Calculator
Estimate your federal donor tax credit.
Eligible Expenses
See the K-12 expenses EFTC scholarships cover.
Who It Helps
Built for schools, families, and donors
For Schools
- Check whether your families qualify by county income
- Assess your readiness across 6 domains
- Build a free advocacy kit if your state has not opted in
For Families & Donors
- Families: see the 300% area median income limit for your county
- Donors: redirect federal tax liability into K-12 scholarships
- Track which states have opted in
FAQ
Frequently asked questions
What is the Education Freedom Tax Credit?
The EFTC, created by the Educational Choice for Children Act (signed July 4, 2025), provides a federal tax credit for cash donations to approved Scholarship Granting Organizations (SGOs). It creates a new, permanent funding stream for K-12 education choice.
What is the donor tax credit?
Donors can claim a federal tax credit of up to $1,700 per return for cash contributions to an SGO. The credit is nonrefundable, so it reduces your federal tax to zero but not below, and any unused amount carries forward up to 5 years. Contributions must be cash, not stock or property. Final figures are pending Treasury regulations.
How does a state opt in?
The governor signs an executive order or the state legislature passes enabling legislation. Once opted in, the state can designate Scholarship Granting Organizations to distribute EFTC funds.
Who is eligible for EFTC scholarships?
Families with household income at or below 300% of the area median income qualify. The threshold is set per county from HUD income data, so it varies by where a family lives.
What expenses does EFTC cover?
EFTC scholarships cover a defined list of K-12 expenses under IRC Section 530(b)(3), including tuition, fees, tutoring, books, supplies, technology, and special needs services. See the full list on the Eligible Expenses tool.
How can I help my state opt in?
Use our advocacy kit builder to generate personalized letters to your governor and state legislators. Every voice matters.
Stay in the loop as EFTC rolls out
Get updates as more states opt in and as Treasury guidance is finalized.
