EFTC in Idaho

Idaho 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: Brad Little; Republican
Status: Opted in
Program begins: January 1, 2027; Federal tax credit live

Thank Governor Little

What EFTC means for Idaho

Because Governor Brad Little has opted Idaho into EFTC, families in Idaho will be eligible for scholarships funded through the program when it goes live on January 1, 2027. Designated Scholarship Granting Organizations (SGOs) in Idaho will receive donations from federal taxpayers and distribute them as scholarships to qualifying K-12 students.

Donors in Idaho, 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.

Idaho's participation means federal tax dollars contributed by Idaho residents stay in Idaho, supporting families here rather than flowing to scholarship organizations in other states.

Frequently asked questions about EFTC in Idaho

Does Idaho participate in EFTC?

Yes. Governor Brad Little has opted Idaho into the program, making Idaho families eligible for scholarships when the program begins on January 1, 2027.

Who is the governor of Idaho and what is their position on EFTC?

Governor Brad Little (Republican) has opted the state in.

Can Idaho 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. Idaho residents can give to SGOs in Idaho and the scholarships will fund Idaho 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.

Becoming an SGO in Idaho

To operate as a Scholarship Granting Organization (SGO) in Idaho under the federal Education Freedom Tax Credit, an organization must meet the §25F requirements that apply in every participating state, plus anything Idaho adds on top. Here is the current picture.

Certification status: Not yet published, awaiting federal guidance

Administered by: Idaho State Department of Education (SDE)

How Idaho opted in: Form 15714 advance election (January 2026) + Executive Order 2026-03 + House Bill 731

Federal requirements (apply in every state)

Be a 501(c)(3) nonprofit that is not classified as a private foundation.
Spend at least 90% of the income you receive on scholarships, the remaining 10% is the only budget for all administration, including fundraising.
Award scholarships to 10 or more students who attend more than one school.
Do not earmark or reserve contributions for a specific, named student.
Serve students in households at or below 300% of area median gross income.
Appear on your state's certified SGO list, which the state submits to the U.S. Treasury.

Idaho-specific requirements

An SGO must be located in Idaho.
SDE accepts SGO submissions year-round and publishes the list on its website.

Idaho is among the most advanced states: EO 2026-03 already defines the process and directs SDE to submit the list by January 1, though certification criteria still await the federal rules.

Sources: Idaho Executive Order 2026-03 (full text)

Full walkthrough: how to start an SGO. The intake, income verification, receipting, and disbursement a compliant program needs can run on software built specifically for the §25F workflow.

Scholarship Granting Organizations in Idaho

Our directory tracks the Scholarship Granting Organizations running today’s state tax-credit scholarship programs, the organizations most likely to administer the federal EFTC once official §25F lists are certified.

Browse the national SGO directory →