EFTC in Massachusetts
Massachusetts has not yet announced a decision on the federal scholarship tax credit program. Also known as the Federal Scholarship Tax Credit (FSTC), the program was enacted as IRC §25F and takes effect January 1, 2027.
- Governor
- Maura Healey
- Democrat
- Status
- No decision yet
- Program begins
- January 1, 2027
- Federal tax credit live
What's at stake for Massachusetts
Governor Maura Healey has not yet announced a decision on whether Massachusetts will opt in to the federal Educational Choice for Children Act (EFTC). The program goes live on January 1, 2027, and governors must submit a list of qualifying Scholarship Granting Organizations (SGOs) to the U.S. Treasury by January 1 of each participating year.
If Massachusetts opts in, families across the state will be eligible for scholarships funded through the program, and federal tax dollars contributed by Massachusetts donors will stay in Massachusetts communities. If Massachusetts does not opt in, donors here can still claim the federal tax credit by giving to SGOs in other states, but those scholarships will go to students elsewhere.
Massachusetts residents, parents, educators, and taxpayers can let Governor Maura Healey know they want Massachusetts to participate. The decision is annual: even if a governor declines initially, future years remain open.
Frequently asked questions about EFTC in Massachusetts
Does Massachusetts participate in EFTC?
Not yet decided. Governor Maura Healey has not announced a decision. Governors can opt in by submitting a list of qualifying Scholarship Granting Organizations (SGOs) to the U.S. Treasury by January 1 of each year.
Who is the governor of Massachusetts and what is their position on EFTC?
Governor Maura Healey (Democrat) has not yet announced a decision.
Can Massachusetts 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. Because Massachusetts has not yet opted in, donations from Massachusetts residents would need to go to SGOs in opted-in states, funding scholarships for students in those states rather than in Massachusetts.
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 Massachusetts
Massachusetts has not opted into the federal §25F credit, so there is no SGO certification pathway here yet. If Massachusetts opts in, an organization would need to meet the federal requirements that apply in every participating 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.
Follow Massachusetts’s status above, and see how to start an SGO to prepare in the meantime.
Scholarship Granting Organizations in Massachusetts
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 →Other states with the same status
States that have also no decision yet.
Recent Massachusetts EFTC / FSTC news
Coverage of Massachusetts’s Federal Scholarship Tax Credit decisions and developments.
- Analysis · June 19, 2026A week after Treasury's §25F preview: what tax advisers are telling clients, and how states are already reacting
- State action · June 12, 2026Massachusetts stays on the sidelines: Healey awaits Treasury rules as a business coalition and the teachers union clash over the §25F credit
- State action · May 13, 2026Massachusetts coalition of 124 organizations launches to push Gov. Healey into the §25F scholarship tax credit
Learn more about EFTC
In-depth guides on how the program works, who qualifies, and how to participate.
- The real obstacle isn't politics, it's adoptionOnce a state opts in and the program is live, the question that decides whether the Education Freedom Tax Cred…
- Get the credit in your paycheck, not the refundMost people assume a January 2027 donation means waiting until the April 2028 refund to see the $1,700 back, r…
- The CPA's guide to §25FA practitioner's reference to IRC §25F (the EFTC / ECCA / FSTC): the $1,700 dollar-for-dollar credit, why it w…
- Year-end planning: which December mattersThe Education Freedom Tax Credit takes effect January 1, 2027, which turns the usual year-end playbook upside …
- The EFTC, explained for your communityA plain-language, forward-it-to-anyone explainer of the new federal scholarship tax credit: what it is (up to …
- Designating your gift to a schoolSection 25F bans earmarking a donation for any particular student, and that ban is exactly as wide as it sound…
Make your voice heard in Massachusetts
Contact Governor Maura Healey and let them know that Massachusetts families want access to EFTC scholarships when the program begins January 2027.
Contact Governor Healey →
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Stay updated on opt-in votes, guidance, and deadlines as the January 2027 launch approaches.