EFTC in Michigan

Michigan 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: Gretchen Whitmer; Democrat
Status: No decision yet
Program begins: January 1, 2027; Federal tax credit live

Contact Governor Whitmer →

What's at stake for Michigan

Governor Gretchen Whitmer has not yet announced a decision on whether Michigan 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 Michigan opts in, families across the state will be eligible for scholarships funded through the program, and federal tax dollars contributed by Michigan donors will stay in Michigan communities. If Michigan 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.

Michigan residents, parents, educators, and taxpayers can let Governor Gretchen Whitmer know they want Michigan to participate. The decision is annual: even if a governor declines initially, future years remain open.

Frequently asked questions about EFTC in Michigan

Does Michigan participate in EFTC?

Not yet decided. Governor Gretchen Whitmer 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 Michigan and what is their position on EFTC?

Governor Gretchen Whitmer (Democrat) has not yet announced a decision.

Can Michigan 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 Michigan has not yet opted in, donations from Michigan residents would need to go to SGOs in opted-in states, funding scholarships for students in those states rather than in Michigan.

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 Michigan

Michigan has not opted into the federal §25F credit, so there is no SGO certification pathway here yet. If Michigan 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 Michigan’s status above, and see how to start an SGO to prepare in the meantime.

Scholarship Granting Organizations in Michigan

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 →