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.
Becoming an SGO in Oregon
Oregon has not opted into the federal §25F credit, so there is no SGO certification pathway here yet. If Oregon 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 Oregon’s status above, and see how to start an SGO to prepare in the meantime.
Scholarship Granting Organizations in Oregon
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 declined.
Recent Oregon EFTC / FSTC news
Coverage of Oregon’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, 2026Oregon Gov. Kotek declines §25F after reconsidering, citing Treasury limits on state SGO rules
- Analysis · May 19, 2026Three states that said no to the FSTC are reconsidering: Hawaii, New Mexico, and Oregon
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 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 →
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