EFTC in New Hampshire
New Hampshire 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
- Kelly Ayotte
- Republican
- Status
- Opted in
- As of 2026-01-29
- Program begins
- January 1, 2027
- Federal tax credit live
What EFTC means for New Hampshire
Because Governor Kelly Ayotte has opted New Hampshire into EFTC, families in New Hampshire will be eligible for scholarships funded through the program when it goes live on January 1, 2027. Designated Scholarship Granting Organizations (SGOs) in New Hampshire will receive donations from federal taxpayers and distribute them as scholarships to qualifying K-12 students.
Donors in New Hampshire, 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.
New Hampshire's participation means federal tax dollars contributed by New Hampshire residents stay in New Hampshire, supporting families here rather than flowing to scholarship organizations in other states.
Frequently asked questions about EFTC in New Hampshire
Does New Hampshire participate in EFTC?
Yes. Governor Kelly Ayotte has opted New Hampshire into the program (decision: 2026-01-29), making New Hampshire families eligible for scholarships when the program begins on January 1, 2027.
Who is the governor of New Hampshire and what is their position on EFTC?
Governor Kelly Ayotte (Republican) has opted the state in. Opted in via Gov. Ayotte's January 2026 advance election (final and on the IRS official list, independent of the implementing bill). In June 2026 the legislature passed HB 1774, the §25F implementing statute (Dept. of Revenue Administration participates and auto-renews; Dept. of Education builds and submits the qualifying-SGO list), through both chambers (Senate May 14, House May 21); awaiting final enactment.
Can New Hampshire 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. New Hampshire residents can give to SGOs in New Hampshire and the scholarships will fund New Hampshire 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 New Hampshire
To operate as a Scholarship Granting Organization (SGO) in New Hampshire under the federal Education Freedom Tax Credit, an organization must meet the §25F requirements that apply in every participating state, plus anything New Hampshire adds on top. Here is the current picture.
How New Hampshire opted in: Gov. Ayotte's executive advance election (January 29, 2026); HB 1774 implementing statute passed both chambers
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.
New Hampshire-specific requirements
New Hampshire has not published SGO requirements beyond the federal rules yet. Certification mechanics are gated on Treasury’s proposed §25F regulations, expected by the end of September 2026, so watch for New Hampshire’s application window to open after that.
New Hampshire's opt-in was announced by the Department of Education (the presumptive list-builder); HB 1774 assigns participation to the Department of Revenue Administration and the qualifying-SGO list to the Department of Education.
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 New Hampshire
4 Scholarship Granting Organizations currently serve New Hampshire through state tax-credit scholarship programs and national networks, the organizations most likely to administer the federal EFTC here once official §25F lists are certified.
Browse SGOs in New Hampshire →Other states with the same status
States that have also opted in.
Recent New Hampshire EFTC / FSTC news
Coverage of New Hampshire’s Federal Scholarship Tax Credit decisions and developments.
- State action · June 23, 2026New Hampshire passes a §25F implementing statute, putting its scholarship-credit machinery on Gov. Ayotte's desk
- State action · January 29, 2026New Hampshire opts into the federal §25F scholarship tax credit: Gov. Ayotte announces participation during School Choice Week
- State action · January 29, 2026New Hampshire opts into the Federal Scholarship Tax Credit under Gov. Ayotte
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…
Thank Governor Ayotte for opting New Hampshire 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 Ayotte →
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