EFTC in Ohio
Ohio 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
- Mike DeWine
- Republican
- Status
- Opted in
- Program begins
- January 1, 2027
- Federal tax credit live
What EFTC means for Ohio
Because Governor Mike DeWine has opted Ohio into EFTC, families in Ohio will be eligible for scholarships funded through the program when it goes live on January 1, 2027. Designated Scholarship Granting Organizations (SGOs) in Ohio will receive donations from federal taxpayers and distribute them as scholarships to qualifying K-12 students.
Donors in Ohio, 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.
Ohio's participation means federal tax dollars contributed by Ohio residents stay in Ohio, supporting families here rather than flowing to scholarship organizations in other states.
Frequently asked questions about EFTC in Ohio
Does Ohio participate in EFTC?
Yes. Governor Mike DeWine has opted Ohio into the program, making Ohio families eligible for scholarships when the program begins on January 1, 2027.
Who is the governor of Ohio and what is their position on EFTC?
Governor Mike DeWine (Republican) has opted the state in.
Can Ohio 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. Ohio residents can give to SGOs in Ohio and the scholarships will fund Ohio 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 Ohio
To operate as a Scholarship Granting Organization (SGO) in Ohio under the federal Education Freedom Tax Credit, an organization must meet the §25F requirements that apply in every participating state, plus anything Ohio adds on top. Here is the current picture.
How Ohio opted in: Gov. DeWine's executive advance election (2026)
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.
Ohio-specific requirements
Ohio 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 Ohio’s application window to open after that.
Ohio has not confirmed the office that will certify §25F SGOs. Its existing state SGO credit is administered by the Attorney General's Charitable Law Section, a natural candidate to reuse, but this is unconfirmed and the federal income limits differ from the state criteria.
Sources: Ohio Attorney General: certified Scholarship Granting Organizations (state program)
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 Ohio
82 Scholarship Granting Organizations currently serve Ohio 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 Ohio →Other states with the same status
States that have also opted in.
Recent Ohio EFTC / FSTC news
Coverage of Ohio’s Federal Scholarship Tax Credit decisions and developments.
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 DeWine for opting Ohio 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 DeWine →
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