EFTC, Education Freedom Tax Credit
StatesAll 50 + DC, where each one standsUpdated 2026-10-16

EFTC participation, state by state

The Education Freedom Tax Credit (EFTC) is the first federal tax credit scholarship program in U.S. history, beginning January 1, 2027. For families in a given state to access EFTC scholarships, the governor (or whoever state law designates) must opt their state in, one year at a time. Here’s where every state stands.

31 opted in2 governor vetoed2 declined16 no decision yet

As of October 16, 2026, 31 states have opted in to the federal Education Freedom Tax Credit (§25F). 2 governors have vetoed an opt-in bill, 2 states have declined, and 16 have not yet decided. The program begins January 1, 2027.

What the rules say: under Treasury’s temporary regulations (October 1, 2026), a state takes part in 2027 only if it files an advance election by January 1, 2027 and submits its SGO list to the IRS by February 15, 2027. Donors in any state can give to an SGO in any participating state; under the proposed regulations, scholarships go to students who live in the state whose list the SGO is on.

Opted in: Alabama, Alaska, Arkansas, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New York, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, Wyoming.

Note on the count: the IRS’s official published list names 30 states (as of September 14, 2026). This tracker counts 31: those 30 plus New York, whose governor announced on October 9, 2026 that the state will participate. It still has to file its advance election with the IRS by January 1, 2027 and is not on the IRS list yet. Kentucky, the last state that was in by legislative override without a federal filing, completed its election on July 22, 2026 and appeared on the IRS list on July 27.

Click any state to see its status, governor, and what to do next.

States that have opted in (31)

These states have opted in to EFTC. Under Treasury's temporary regulations (October 2026), each completes its 2027 election by submitting its list of qualifying Scholarship Granting Organizations (SGOs) to the IRS by February 15, 2027, and elects again each year; a state whose governor has announced but not yet filed must also file its advance election (Form 15714) by January 1, 2027. Scholarships become available to families who live in these states once the program begins January 1, 2027.

States that have not yet decided (16)

Governors of these states have not yet announced a decision. Time is short: under Treasury's temporary regulations, a state must file an advance election with the IRS by January 1, 2027 to take part in 2027.

States where the governor vetoed an opt-in bill (2)

In these states, the legislature passed an opt-in bill but the governor vetoed it. Without a veto override or a governor reversal, families in these states will not be eligible for EFTC scholarships.

States that have declined to participate (2)

Governors of these states have stated their states will not participate. Families here will not be eligible for EFTC scholarships unless the decision is reversed. States elect one calendar year at a time, so a later year remains open.

Don’t see your state opted in?

Click your state above to see who your governor is, what their current position is, and how to make your voice heard before the January 1, 2027 deadline for a state to elect into the program’s first year.

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