Tennessee
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Bill Lee
Governor , R
“A quality education has the power to change the trajectory of a child's life, and I'm grateful that Tennessee parents will have the opportunity to choose the best school for their child through the Education Freedom Scholarship Program.”
Governor Bill Lee, February 12, 2025 (on signing the Education Freedom Act)
EFTC Status in Tennessee
Governor Bill Lee's office confirmed intent to participate as early as August 2025. Formally opted in by January 2026.
Great news!
Tennessee has opted in to the Education Freedom Tax Credit.
Governor's office confirmation via spokesperson; no separate formal announcement event.
EFTC Readiness Checklist for Tennessee Schools
Tennessee 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 Tennessee. 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
On June 8, 2026, the IRS announced in release IR-2026-76 that 27 states, including Tennessee, had elected to participate in the new federal scholarship tax credit program created by the One Big Beautiful Bill, confirming the federal opt-in under Governor Bill Lee. States opt in by filing IRS Form 15714, and beginning January 1, 2027 donors may claim a federal credit of up to $1,700 for contributions to qualified scholarship granting organizations.
· Internal Revenue Service (IR-2026-76)
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Tennessee has opted in. Explore eligibility tools and school readiness resources to make the most of the Education Freedom Tax Credit.
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