EFTC in Colorado
Colorado is participating in the federal Educational Choice for Children Act scholarship program. Also known as the Federal Scholarship Tax Credit (FSTC), the program was enacted as IRC §25F and takes effect January 1, 2027.
- Governor
- Jared Polis
- Democrat
- Status
- Opted in
- As of 2025-12-05
- Program begins
- January 1, 2027
- Federal tax credit live
What EFTC means for Colorado
Because Governor Jared Polis has opted Colorado into EFTC, families in Colorado will be eligible for scholarships funded through the program when it goes live on January 1, 2027. Designated Scholarship Granting Organizations (SGOs) in Colorado will receive donations from federal taxpayers and distribute them as scholarships to qualifying K–12 students.
Donors in Colorado — and anywhere else in the country — can claim a federal income tax credit of up to $1,700 per tax return for contributions to a qualifying SGO, beginning January 2027. The credit is non-refundable and capped, but it lets taxpayers redirect federal income tax that would otherwise go to the U.S. Treasury into scholarships for students in their own community.
Colorado's participation means federal tax dollars contributed by Colorado residents stay in Colorado, supporting families here rather than flowing to scholarship organizations in other states.
Frequently asked questions about EFTC in Colorado
Does Colorado participate in EFTC?
Yes. Governor Jared Polis has opted Colorado into the program (decision: 2025-12-05), making Colorado families eligible for scholarships when the program begins on January 1, 2027.
Who is the governor of Colorado and what is their position on EFTC?
Governor Jared Polis (Democrat) has opted the state in. Polis called opting in a "no-brainer" and said he would "be crazy not to" take the federal credit for Colorado families.
Can Colorado residents donate to an SGO and claim the federal tax credit?
Beginning January 1, 2027, any U.S. taxpayer can claim a federal income tax credit of up to $1,700 per tax return for donations to a qualifying Scholarship Granting Organization, regardless of the state they live in. Colorado residents can give to SGOs in Colorado and the scholarships will fund Colorado students.
When does the EFTC program begin?
The Educational Choice for Children Act program begins on January 1, 2027. Donations made on or after that date are eligible for the federal tax credit. Each participating state's governor must submit a list of qualifying Scholarship Granting Organizations to the U.S. Treasury by January 1 of each participating year.
Other states with the same status
States that have also opted in.
Recent Colorado EFTC / FSTC news
Coverage of Colorado’s Federal Scholarship Tax Credit decisions and developments.
- State action · 2026-05-09Colorado Gov. Polis publicly defends his FSTC opt-in at Denver eventOn May 9, 2026 — one day after New York signaled intent to join — Colorado Gov. Jared Polis appeared at a Denver event to defend his December 2025 decision to opt Colorado into the federal Scholarship Tax Credit (FSTC / ECCA / §25F), saying he doesn't want the state to “leave money on the table.” The remarks followed a state legislative dust-up over anti-discrimination conditions on participating SGOs.
- State action · 2025-12-05Colorado Gov. Polis opts Colorado into the Federal Scholarship Tax CreditOn December 5, 2025, Colorado Governor Jared Polis announced Colorado will opt into the federal Scholarship Tax Credit (FSTC / ECCA / §25F) program. In a Colorado Sun interview, Polis called opting in a “no-brainer” and said he would “be crazy not to” take the federal credit for Colorado families.
Learn more about EFTC
In-depth guides on how the program works, who qualifies, and how to participate.
- What is ECCA / FSTC?A complete guide to the Educational Choice for Children Act (ECCA), also known as the Federal Scholarship Tax …
- The federal tax credit, explainedHow the Education Freedom Tax Credit (EFTC / §25F) works for donors: $1,700 per tax return, 5-year carryforwar…
- Scholarship eligibilityWhich K–12 students qualify for EFTC scholarships, the income limits, what schools and educational expenses ar…
- How states opt inHow a state opts in to the federal EFTC scholarship program: the governor's annual Treasury submission, legisl…
- EFTC for special-needs familiesHow families of K–12 students with disabilities can use EFTC scholarships to fund therapies, specialized instr…
- EFTC for homeschool & microschoolHow homeschoolers, microschool families, learning pods, and hybrid-school families can use EFTC scholarships, …
Thank Governor Polis for opting Colorado in
A short note of thanks from a constituent goes a long way — and reinforces that participation matters to families in your state.
Contact Governor Polis →