North Carolina
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Josh Stein
Governor , D
“I see opportunities for the federal scholarship donation tax credit program to benefit North Carolina's public school kids. Once the federal government issues sound guidance, I intend to opt North Carolina in.”
Governor Josh Stein, August 6, 2025 (veto statement)
EFTC Status in North Carolina
Governor Josh Stein (D) vetoed HB 87 (Educational Choice for Children Act) in August 2025, but the Republican-led General Assembly overrode the veto to opt North Carolina in. The House voted 73-46 on May 20, 2026 and the Senate completed the override 30-19 on June 3, 2026, enacting HB 87 over Stein's objection. North Carolina taxpayers will be able to claim the federal credit of up to $1,700 for donations to qualified scholarship-granting organizations beginning in 2027. The State Education Assistance Authority will manage and submit the list of qualified SGOs to the U.S. Treasury.
Great news!
North Carolina has opted in to the Education Freedom Tax Credit.
EFTC Readiness Checklist for North Carolina Schools
North Carolina has opted in to the EFTC. Use this 7-step checklist to prepare your school for participation.
Confirm Eligibility
Verify your school is an eligible K-12 institution (private, religious, or homeschool cooperative) under EFTC program rules.
Identify SGOs
Research which Scholarship Granting Organizations operate in North Carolina. Contact them to understand application processes and timelines.
Estimate Family Eligibility
Use the EFTC Income Eligibility Calculator to estimate how many of your families fall within the 300% median income threshold.
Open CalculatorPrepare Documentation
Gather documentation of qualifying educational expenses: tuition, fees, tutoring, curriculum materials, and educational therapy costs.
Designate a Coordinator
Assign an EFTC coordinator to manage scholarship applications, SGO partnerships, and family communications.
Develop Communication Plan
Create materials to inform families about EFTC eligibility, the application process, and covered expenses. Plan for information sessions and one-on-one support.
Build SGO Relationships
Establish relationships with at least one SGO before the application window opens. Understand their requirements, reporting expectations, and disbursement timelines.
Recent News
The North Carolina Senate completed a veto override of HB 87 (Educational Choice for Children Act) by a 30-19 vote on June 3, 2026, following the House's 73-46 override on May 20. The override opts North Carolina into the federal scholarship tax credit, letting donors claim a credit of up to $1,700 for gifts to scholarship-granting organizations starting in 2027.
· Carolina Journal
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North Carolina has opted in. Explore eligibility tools and school readiness resources to make the most of the Education Freedom Tax Credit.
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