EFTC in Vermont
Vermont 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
- Phil Scott
- Republican
- Status
- No decision yet
- Program begins
- January 1, 2027
- Federal tax credit live
What's at stake for Vermont
Governor Phil Scott has not yet announced a decision on whether Vermont 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 Vermont opts in, families across the state will be eligible for scholarships funded through the program, and federal tax dollars contributed by Vermont donors will stay in Vermont communities. If Vermont 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.
Vermont residents, parents, educators, and taxpayers can let Governor Phil Scott know they want Vermont to participate. The decision is annual: even if a governor declines initially, future years remain open.
Frequently asked questions about EFTC in Vermont
Does Vermont participate in EFTC?
Not yet decided. Governor Phil Scott 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 Vermont and what is their position on EFTC?
Governor Phil Scott (Republican) has not yet announced a decision. Enacted H.933 as Act 164 (signed June 18, 2026): a conditional, public-schools-first §25F opt-in that directs the Governor to decline if federal rules invalidate the state's conditions, which Treasury's preview suggests they will. Final in/out turns on the September 2026 regulations.
Can Vermont 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 Vermont has not yet opted in, donations from Vermont residents would need to go to SGOs in opted-in states, funding scholarships for students in those states rather than in Vermont.
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 Vermont
Vermont has not opted into the federal §25F credit, so there is no SGO certification pathway here yet. If Vermont 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 Vermont’s status above, and see how to start an SGO to prepare in the meantime.
Scholarship Granting Organizations in Vermont
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 no decision yet.
Recent Vermont EFTC / FSTC news
Coverage of Vermont’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…
Make your voice heard in Vermont
Contact Governor Phil Scott and let them know that Vermont families want access to EFTC scholarships when the program begins January 2027.
Contact Governor Scott →
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