The Education Freedom Tax Credit (EFTC) is a once-in-a-generation opportunity to expand scholarships for K-12 students. Donors can receive a tax credit up to $1,700 for contributing; which means more children can access scholarships.
A new federal tax credit designed to expand access to K–12 scholarships
Understand how donors can fund scholarships through accredited SGOs—redirecting dollars to K-12 students instead of systems.
Beginning in 2027, eligible donors can receive a 100% federal tax credit up to $1,700, turning taxes owed into direct support for students.
Your contribution helps fund scholarships in participating states, giving families access to educational options that meet their children's needs.
Find out if you qualify, see exactly what it costs you, and explore every resource — in under two minutes.
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The Education Freedom Tax Credit gives eligible donors a dollar-for-dollar federal tax credit of up to $1,700 for contributions to qualifying K–12 scholarship organizations. Answer three quick questions to find out if you qualify — and exactly how much your credit could be.
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See exactly how the $1,700 Scholarship Tax Credit flows through your finances — when it leaves, when it comes back, and what it costs you over 12 months.
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AFC Scholarship Fund is a national scholarship granting organization (SGO) dedicated to serving as many students as possible, as quickly as possible, with the Education Freedom Tax Credit (EFTC). We are affiliated with the American Federation for Children Growth Fund and are partnering with Odyssey, leading organizations dedicated to advancing school choice and providing the software to power it.
Get answers to common questions about the Education Freedom Tax Credit and the AFC Scholarship Fund.
The Education Freedom Tax Credit (EFTC) is a new federal tax credit that rewards taxpayers who donate to qualified scholarship granting organizations (SGOs). When you make a charitable contribution to a qualified SGO, you receive a dollar-for-dollar federal tax credit of up to $1,700. This reduces what you owe the IRS when you file your taxes. The donation comes first, then the tax benefit follows. The EFTC takes effect January 1, 2027.
The AFC Scholarship Fund is a nonprofit scholarship granting organization (SGO) created to make the Education Freedom Tax Credit work on a national scale. It is affiliated with the American Federation for Children (AFC), the nation's largest school choice organization. Our mission is to connect donors to students, making it as simple as possible for families to access the education that's right for their children.
Here's the process, step by step:
Step 1: You make a charitable contribution to a qualified scholarship granting organization (SGO).
Step 2: That contribution generates a dollar-for-dollar federal tax credit of up to $1,700.
Step 3: The credit reduces what you owe the IRS when you file your federal taxes.
The EFTC is not a deduction. It is a direct reduction of your federal tax liability. You donate first; the credit follows at filing. The program launches January 1, 2027.
Many charitable donations qualify for a tax deduction. These tax deductions simply reduce your taxable income, which means the actual savings are a fraction of what you gave.
For example, if you're in the 24% tax bracket and claim a $1,700 deduction, you save about $408. That's it.
A tax credit, on the other hand, reduces your actual tax bill, dollar for dollar. If you donate $1,700 to a qualified scholarship granting organization (SGO) and owe $2,000 in federal taxes, you now owe $300. Your tax liability decreases by $1,700, not $408.
Your state's participation status does not affect your ability to claim the federal Education Freedom Tax Credit. The EFTC is a federal benefit. What matters is that the SGO you donate to is a qualified organization. Donors can contribute to SGOs in any participating state and still receive the federal credit, regardless of where they live. If your state has not opted in, you can still donate to a qualified SGO. Your federal credit applies all the same.
Credits for donations of more than $1,700 can be carried forward for up to five years.
The Education Freedom Tax Credit launches January 1, 2027, but families are counting on scholarship infrastructure being in place from day one. When donors register their interest now and commit early, they help scholarship granting organizations build the capacity to serve families quickly when the program goes live. Early participation also helps ensure that lower-income families, who need these scholarships most, have access from the start.
Approximately 90% of American students are eligible to receive EFTC scholarships through a qualified scholarship granting organization (SGO). Eligibility is based on household income relative to local area median income. Scholarships become available starting in 2027 when the Education Freedom Tax Credit takes effect.
If you're wondering whether your family qualifies, register your interest and we'll help you find out.
Scholarship applications are processed through scholarship granting organizations (SGOs) like the AFC Scholarship Fund. The tax credit takes effect on January 1, 2027.
