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Getting the Most Out of the Scholarship Tax Credit

  • Starting in January 2027, a new federal tax credit could unlock billions of dollars in donations to K-12 scholarships for students across the country.
  • Students in public, charter, private, and home schools can use these scholarships for a wide variety of education-related expenses, including tutoring, tuition, after-school programs, special needs services, curriculum materials, and education technology.
  • This website explains how governors, taxpayers, and others can help children and take full advantage of the new tax credit.
200+
Coalition Members
$1,700
100% Credit per Taxpayer
29
States Opted In

In statute, the tax credit is called the “Credit for Contributions of Individuals to Scholarship Granting Organizations,” because businesses cannot take the credit and scholarship donations must be made through an SGO. However, the credit is generally called the Federal Scholarship Tax Credit (FSTC) or the Education Freedom Tax Credit (EFTC), and this site uses those terms throughout.

Find Your Path

For topical information, click on the boxes here.
To see what’s happening in your state, click on the map below.

How the Federal Scholarship Tax Credit Works

A Simple Guide to How Tax-credited Donations Flow to K-12 Students

For Governors & Lawmakers

How to Make Sure Students in Your State Benefit from EFTC Scholarships

For Students & Families

How to Apply for Tutoring, Tuition and Other K-12 Scholarships

For Taxpayers & Donors

How to Make Scholarship Donations and Get a 100% Tax Credit

For Schools & Other Education Providers

How to Help Scholarship Recipients Find Your School, Program, or Services

For Scholarship Granting Organizations

How to Become a SGO and Get on a State SGO List
Interactive Map

Where Does Your State Stand?

Track which Governors have opted in to the EFTC so that students in the state can get K-12 scholarships. Click any state for details.

Opted In
Pending
Not Yet Opted In
29
Opted In
1
Pending
21
Remaining

Even if your state hasn't opted in, you can donate to SGOs in other participating states.

The Big Picture

Basic Points

  1. These K–12 scholarships are privately funded. The money comes from charitable donations to approved Scholarship Granting Organizations — not from government appropriations.

  2. These charitable donations are encouraged by tax law. Taxpayers receive a non-refundable, dollar-for-dollar credit against federal income taxes for SGO donations up to $1,700 annually. Contributions above $1,700 are eligible for tax deductions.

  3. Scholarships can serve all types of students. SGOs can provide FSTC-funded scholarships to students in public, charter, private, and home school.

  4. Eligible uses are broad. SGOs can create scholarships that cover a variety of educational expenses, including tutoring, afterschool programs, private school tuition, educational therapies, curriculum, transportation, and educational technology.

  5. State approval is required. A governor must formally opt in or students in his or her state cannot benefit from FSTC-funded scholarships.

Why This Matters

A Historic Moment for Educational Freedom

The Federal Scholarship Tax Credit will generate billions of dollars for K-12 scholarships across the country. These scholarships will empower families to decide where and how their children get educated.

Taxpayers can take the credit for donations starting January 1, 2027. SGOs are gearing up across the country to raise scholarship funds for their communities. Governors can already opt in, but nearly half of K-12 students live in states where governors have not yet decided whether to participate. There is still time to ensure that students everywhere will benefit from FSTC-funded scholarships.

$1,700
Dollar-for-dollar federal tax credit per individual taxpayer
29
Governors from both parties have opted in.
200+ State and National Organizations, including:
U.S. Conference of Catholic Bishops
American Federation for Children
Agudath Israel of America
EdChoice
Defending Education
Defense of Freedom Institute
50CAN
Democrats for Education Reform
Foundation for Government Accountability
National Association of Public Charter Schools
Children’s Scholarship Fund
ExcelinEd
U.S. Conference of Catholic Bishops
American Federation for Children
Agudath Israel of America
EdChoice
Defending Education
Defense of Freedom Institute
50CAN
Democrats for Education Reform
Foundation for Government Accountability
National Association of Public Charter Schools
Children’s Scholarship Fund
ExcelinEd