Education Freedom Tax Credit
The EFTC provides federal tax credits for approved educational expenses. See which states have opted in, check your school's eligibility, and access tools to prepare.
About the Education Freedom Tax Credit
How EFTC Was Created
The Educational Choice for Children Act was signed into law on July 4, 2025, creating the Education Freedom Tax Credit. The program provides dollar-for-dollar federal income tax credits to fund K-12 education scholarships through Scholarship Granting Organizations (SGOs).
How It Works
Donors contribute to SGOs and receive federal tax credits. SGOs use these funds to award scholarships for qualifying educational expenses, including tuition, fees, tutoring, curriculum materials, and educational therapy for K-12 students.
Who Qualifies
Families earning up to 300% of the area median income qualify for EFTC scholarships. Income thresholds vary by county based on HUD data. Use our eligibility calculator to check if your families meet the threshold.
How States Participate
Each state's governor must opt in by filing IRS Form 15714. Once opted in, the state designates SGOs to operate within its borders and distribute EFTC scholarships to eligible families.
EFTC Status by State
EFTC at a Glance
Dollar-for-dollar federal tax credit per donor
Income threshold for family eligibility
Every state can participate through governor action
Covers tuition, fees, tutoring, and more
Frequently Asked Questions
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