EFTC in Oregon
Oregon has declined to participate in 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
- Tina Kotek
- Democrat
- Status
- Declined
- As of 2025-08-14
- Program begins
- January 1, 2027
- Federal tax credit live
What Oregon's decision means
Governor Tina Kotek announced on 2025-08-14 that Oregon will not opt in to the federal Educational Choice for Children Act (EFTC). Unless the decision is revisited, Oregon will not designate Scholarship Granting Organizations (SGOs), and Oregon families will not be eligible for EFTC scholarships when the program begins on January 1, 2027.
Donors in Oregon — like donors anywhere in the country — can still claim the federal tax credit (up to $1,700 per tax return) by giving to SGOs in states that have opted in. The federal tax dollars they redirect will fund scholarships for students in other states rather than staying in Oregon.
The decision is not necessarily permanent. Governors can update their states' participation each year by submitting a list of qualifying SGOs to the U.S. Treasury by January 1.
Frequently asked questions about EFTC in Oregon
Does Oregon participate in EFTC?
No. Governor Tina Kotek has stated that Oregon will not opt in (announced 2025-08-14). Unless the decision is reversed, Oregon families will not be eligible for the scholarships.
Who is the governor of Oregon and what is their position on EFTC?
Governor Tina Kotek (Democrat) has stated the state will not participate.
Can Oregon 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 Oregon is not currently participating, donations from Oregon residents would need to go to SGOs in opted-in states — funding scholarships for students in those states rather than in Oregon.
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.
Other states with the same status
States that have also declined.
Learn more about EFTC
In-depth guides on how the program works, who qualifies, and how to participate.
- What is ECCA / FSTC?A complete guide to the Educational Choice for Children Act (ECCA), also known as the Federal Scholarship Tax …
- The federal tax credit, explainedHow the Education Freedom Tax Credit (EFTC / §25F) works for donors: $1,700 per tax return, 5-year carryforwar…
- Scholarship eligibilityWhich K–12 students qualify for EFTC scholarships, the income limits, what schools and educational expenses ar…
- How states opt inHow a state opts in to the federal EFTC scholarship program: the governor's annual Treasury submission, legisl…
- EFTC for special-needs familiesHow families of K–12 students with disabilities can use EFTC scholarships to fund therapies, specialized instr…
- EFTC for homeschool & microschoolHow homeschoolers, microschool families, learning pods, and hybrid-school families can use EFTC scholarships, …
Make your voice heard in Oregon
Contact Governor Tina Kotek and let them know that Oregon families want access to EFTC scholarships when the program begins January 2027.
Contact Governor Kotek →