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Learn EFTC
The Education Freedom Tax Credit (EFTC) is the first federal tax credit scholarship program in U.S. history. It begins January 1, 2027. Choose your track below — whether you’re learning about the program or running a scholarship organization.
For families, donors & advocates
Understanding EFTC
How the Education Freedom Tax Credit works, who qualifies for scholarships, and how families and donors participate.
Anyone new to the program — parents, donors, educators, advocates
What is ECCA / FSTC?
A complete guide to the Educational Choice for Children Act (ECCA), also known as the Federal Scholarship Tax Credit (FSTC) and codified at IRC §25F. How the federal scholarship tax credit works, who qualifies, when it begins, and what state participation means.
Read · 8 minDonors, taxpayers, accountants
The federal tax credit, explained
How the Education Freedom Tax Credit (EFTC / §25F) works for donors: $1,700 per tax return, 5-year carryforward, non-refundable, cash only, no double-deduction with §170 — plus worked examples.
Read · 8 minParents and guardians of K–12 students
Scholarship eligibility
Which K–12 students qualify for EFTC scholarships, the income limits, what schools and educational expenses are covered, and how families apply through a Scholarship Granting Organization (SGO).
Read · 7 minAdvocates, voters, legislators, journalists
How states opt in
How a state opts in to the federal EFTC scholarship program: the governor's annual Treasury submission, legislative vs. executive paths, what citizens can do to advocate, and what happens when a state doesn't participate.
Read · 8 minParents of K–12 students with disabilities or IEPs
EFTC for special-needs families
How families of K–12 students with disabilities can use EFTC scholarships to fund therapies, specialized instruction, evaluations, and assistive technology, plus how SGOs prioritize special-education needs.
Read · 6 minHomeschool, microschool, hybrid-school families
EFTC for homeschool & microschool
How homeschoolers, microschool families, learning pods, and hybrid-school families can use EFTC scholarships, what expenses qualify, and how to find an SGO that supports your educational model.
Read · 6 minDonors and families in states with their own scholarship credits
EFTC vs. state scholarship tax credits
How the federal EFTC tax credit compares to existing state-level scholarship tax credit programs, whether donors can stack the two, and what families should know about each.
Read · 6 minAnyone confused by the program's many names
What is the EFTC / FSTC?
The Education Freedom Tax Credit (EFTC) — also called the Federal Scholarship Tax Credit (FSTC), the Educational Choice for Children Act (ECCA), and IRC §25F — is the new federal $1,700 K–12 scholarship tax credit. Here's why it has so many names and what to call it.
Read · 4 minDonors, families, SGOs, and advocates tracking the rollout
EFTC timeline & key dates
A dated roadmap of the federal Education Freedom Tax Credit (EFTC / ECCA / §25F): when it was enacted, when states make the advance election and submit SGO lists, when donations begin counting, and when donors claim the first credits.
Read · 6 minPrivate, faith-based, and independent school leaders
EFTC for private & faith-based schools
How private, religious, and independent K–12 schools can benefit from the Education Freedom Tax Credit (EFTC / ECCA / §25F): how scholarship dollars reach your school through SGOs, what families need to qualify, and how to prepare for the January 2027 launch.
Read · 7 min
For nonprofits, schools & operators
Running an SGO
What it takes to become a designated Scholarship Granting Organization — from formation to compliance to operations.
Nonprofits, schools, donors, families
Scholarship Granting Organizations
What an SGO is, how organizations get designated by their state, the 90/10 rule, what compliance looks like, and how donors and families choose between SGOs.
Read · 6 minFirst-time founders, nonprofit leaders, schools, community groups
How to start an SGO
The complete, start-from-nothing guide to launching a Scholarship Granting Organization (SGO) for the federal Education Freedom Tax Credit (EFTC / ECCA / §25F): incorporating a nonprofit, getting an EIN, filing for 501(c)(3) (Form 1023 vs 1023-EZ, real fees and timelines), opening the required separate bank accounts, registering to fundraise, meeting every §25F operating rule, getting on your state's list, and a step-by-step checklist — written for founders with zero nonprofit experience.
Read · 16 minSGO operators, boards, nonprofit finance and compliance staff
The 90/10 rule & SGO compliance
A deep dive into the federal §25F rules every Scholarship Granting Organization must meet: the 90% income-to-scholarships requirement and 10% administrative cap, the 10-student rule, renewal and sibling priority, anti-earmarking, the self-dealing prohibition, separate-account rules, donor substantiation, and income verification.
Read · 9 minSGO founders, operators, boards, nonprofit finance staff
SGO software
What SGO software does and why the federal §25F 90/10 rule makes it essential: donor onboarding and identity verification, payment processing, per-donor §25F receipts, family applications and income verification, an award engine with renewal and sibling priority, separate-account fund accounting, state reporting, and an audit trail. A buyer's checklist and build-vs-buy guide for new SGOs.
Read · 9 min
SGO Software
Ready to operate? The platform is built for this.
Donor onboarding, identity verification, payment collection, scholarship awards, and per-donor §25F receipts — designed around the January 1, 2027 launch.
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