Last updated: October 16, 2026 | We update this page every month and whenever a state’s status changes.
The Education Freedom Tax Credit is a federal tax credit, but each state decides whether scholarships funded through it reach its own students. That makes the state map one of the most important things to watch before the credit takes effect on January 1, 2027.
This page tracks where every state stands.
The Snapshot
| Status | Count |
|---|---|
| Opted in | 30 |
| Announced intent to opt in | 1 |
| Undecided | 13 states + D.C. |
| Declined | 4 |
| Governor vetoed opt-in | 2 |
Status as of October 1, 2026.
What “Opted In” Means
To take part, a state files an election with the IRS and then submits a list of qualified Scholarship Granting Organizations (SGOs). For 2027, states need to file their election by January 1, 2027, and submit their SGO list by February 15, 2027.
Once a state is in, SGOs on its list can award scholarships to students who live there.
Here’s the part that surprises people: where you live doesn’t decide whether you can claim the credit. It’s a federal tax credit, so donors in every state can give to a qualified SGO serving a participating state. What a state’s decision controls is whether scholarships reach its own students.
K-12 Scholarships: State-by-State Federal Tax Credit Status
| State | Status | Notes |
|---|---|---|
| Alabama | Opted in | |
| Alaska | Opted in | |
| Arizona | Governor vetoed | Gov. Katie Hobbs vetoed opt-in bills |
| Arkansas | Opted in | |
| California | Undecided | |
| Colorado | Opted in | Gov. Jared Polis opted in, December 2025 |
| Connecticut | Undecided | |
| Delaware | Undecided | |
| District of Columbia | Undecided | |
| Florida | Opted in | |
| Georgia | Opted in | |
| Hawaii | Declined | |
| Idaho | Opted in | |
| Illinois | Undecided | |
| Indiana | Opted in | |
| Iowa | Opted in | |
| Kansas | Opted in | Legislature overrode the governor's veto |
| Kentucky | Opted in | Legislature overrode the governor's veto |
| Louisiana | Opted in | |
| Maine | Undecided | |
| Maryland | Undecided | |
| Massachusetts | Undecided | |
| Michigan | Undecided | |
| Minnesota | Declined | |
| Mississippi | Opted in | |
| Missouri | Opted in | |
| Montana | Opted in | |
| Nebraska | Opted in | First state to commit, by executive order, September 2025 |
| Nevada | Opted in | |
| New Hampshire | Opted in | |
| New Jersey | Undecided | |
| New Mexico | Declined | |
| New York | Announced intent | Gov. Kathy Hochul announced plans to participate, May 2026 |
| North Carolina | Opted in | Legislature overrode the governor's veto |
| North Dakota | Opted in | |
| Ohio | Opted in | |
| Oklahoma | Opted in | |
| Oregon | Declined | |
| Pennsylvania | Undecided | |
| Rhode Island | Undecided | State law requires both the legislature and the governor to approve any opt-in |
| South Carolina | Opted in | |
| South Dakota | Opted in | |
| Tennessee | Opted in | |
| Texas | Opted in | |
| Utah | Opted in | |
| Vermont | Undecided | |
| Virginia | Opted in | First state to complete the formal federal election, January 2026 |
| Washington | Undecided | |
| West Virginia | Opted in | |
| Wisconsin | Governor vetoed | Gov. Tony Evers vetoed opt-in legislation |
| Wyoming | Opted in |
Key Dates
July 4, 2025: EFTC became law as part of the One Big Beautiful Bill Act.
June 2026: Treasury previewed the regulatory framework for the EFTC.
October 2026: Treasury released proposed regulations on October 1, confirming no marriage penalty for couples filing jointly, allowing governors to designate SGOs, and fully outlining SGO requirements.
January 1, 2027: The credit goes live. States must submit SGO lists to the IRS.
Ongoing: The IRS will build a dedicated SGO portal to support administration, donor reporting, and transparency, but that may be coming later.
Be the First to Know
Get notified when the Education Freedom Tax Credit launches so you don’t miss the opportunity to support K–12 students while benefiting from a federal tax credit.
What Your State’s Status Means for You
If your state has opted in
- Donors: You can give to a qualified SGO serving your state, and your gift can fund scholarships for students in your own community.
- Families: Your student may be eligible for a scholarship. About 90% of American students qualify based on household income. Check your eligibility.
If your state is undecided
- Donors: You can still claim the federal credit. Give to a qualified SGO serving a participating state.
- Families: Scholarships won’t reach students in your state unless it opts in. Read how states opt in to see how the process works.
If your state declined or the governor vetoed
- Donors: The same is true. You can give and claim the federal credit through an SGO serving a participating state. Your gift helps children in that state rather than in yours.
- Families: Your state’s decision can change. Governors can opt in in future years.
How the Credit Works, in Brief
Give to a qualified Scholarship Granting Organization (SGO) and receive a dollar-for-dollar federal tax credit: up to $1,700 for individuals, or up to $3,400 for married couples filing jointly. You give first; the credit reduces your federal tax bill when you file.
Give $1,700 as an individual, or $3,400 as a married couple filing jointly, and the credit covers the full gift. Give more and you get the same credit, with the rest treated like any other charitable contribution, subject to the usual tax rules. Larger gifts help more students.
For the full picture, start with The Education Freedom Tax Credit: The Complete 2027 Guide.
As of October 1, 2026, 30 states have opted in. New York has announced plans to participate.
States must file their election with the IRS by January 1, 2027, and submit their list of qualified SGOs by February 15, 2027.
Yes. It’s a federal tax credit, so you can give to a qualified SGO serving a participating state and claim it on your federal return. Scholarships go to students in participating states.
Nebraska was the first to commit, by executive order in September 2025. Virginia was the first to complete the formal federal election, in January 2026.
Yes. A state’s decision isn’t permanent, and governors can choose to opt in for future years.
No. It’s a federal tax credit. Opting in doesn’t require state budget dollars.
