National School Choice Week usually produces proclamations. On January 29, 2026, New Hampshire produced a decision.
That morning, Gov. Kelly Ayotte announced the state would take part in the Education Freedom Tax Credit (EFTC) created under Section 25F of the One Big Beautiful Bill Act, the law President Trump signed on July 4, 2025.
The headline was straightforward. The timing was not. Nothing changed for a single New Hampshire donor or family that week, or that month, or that year. The first dollar of a qualified contribution could not be given until January 1, 2027.
Understanding why is the most useful thing a New Hampshire reader can take from the past year.
What a State Opt-In Actually Does
The federal credit does not reach taxpayers automatically. A state has to place itself on the federal roster first, through what the statute calls an advance election.
Treasury and the IRS set out that election path for the 2027 program year. Until a state makes it, no taxpayer in that state can claim the credit, no matter how much they give.
So Ayotte’s announcement was not a statement of support. It was a procedural step that switched New Hampshire from ineligible to eligible, in advance of a program that had not yet started.
New Hampshire was not alone. Virginia went first under Glenn Youngkin, Florida followed under Ron DeSantis, and Colorado came in early under Jared Polis, a Democrat.
Here’s a closer look at how states opt in shows how uneven those routes have been.
Why the Legislature Had to Say Yes Too
An election places a state’s name on a federal list. It does not build the machinery underneath it.
In June 2026, New Hampshire lawmakers passed HB 1774, the implementing framework for the state’s participation. The bill directs the Department of Revenue Administration to take part in the credit and assigns the Department of Education the job of building and submitting the state’s list of qualifying scholarship organizations.
That second task is the one that matters most to families. A nonprofit that awards scholarships to students, formally called a Scholarship Granting Organization (SGO), cannot receive contributions that qualify for the federal credit until it appears on a state’s approved list.
Here’s why that matters: an opt-in without an approved list is a promise without an address. New Hampshire spent the first half of 2026 turning one into the other.
What the Credit Is, and What It Isn’t
Under the EFTC, eligible taxpayers may claim a dollar-for-dollar federal tax credit of up to $1,700 for a qualified contribution to an approved SGO.
The order of events is fixed. A donor makes a charitable contribution first. The credit is claimed later, when that donor files a federal income tax return for the year of the gift.
This is a tax credit, not a deduction. A deduction lowers the income a taxpayer is taxed on. A credit reduces federal income tax liability directly, dollar for dollar, up to the cap set in statute. The difference is explained in more detail in AFC’s guide to tax credits versus deductions.
Several mechanics remain open. How the credit applies against a taxpayer’s total liability, and what happens to any unused portion, are among the details Treasury regulations are expected to address before the launch.
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.
Who the Scholarships Are Meant to Reach
Eligibility for the scholarships themselves runs to families earning up to 300% of their area median gross income.
In practice, the threshold reaches well beyond what most people picture when they hear the word scholarship. A significant share of New Hampshire households fall under it, though the exact figure depends on where a family lives.
Scholarship funds go toward tuition and other qualifying education expenses, with the specifics governed by federal statute and the awarding organization’s own policies.
The Timeline That Now Governs Everything
Five dates are easy to blur together and shouldn’t be.
The law took effect on July 4, 2025. New Hampshire’s executive opt-in came on January 29, 2026. The implementing statute arrived in June 2026. Qualified contributions cannot begin before January 1, 2027. And the credit itself is claimed on a 2027 federal return, filed in 2028.
No stage skips the one before it. A donor who gives to an unapproved organization in December 2026 has made a charitable gift, not a qualified contribution.
For anyone mapping out giving, AFC’s donor timeline from gift to tax filing walks through the same sequence step by step.
What This Means If You Live in New Hampshire
If you are a taxpayer, the practical question for the rest of 2026 is not whether to give. It is which organizations end up on the state’s approved list, and when that list is published.
If you are a parent, the question is whether your household falls under the area threshold where you live, and which schools the organizations in your area work with.
And if you run or are considering starting a scholarship nonprofit, the qualification window is the whole story. Organizations that are not approved before the launch cannot accept qualified contributions on day one.
Children’s Scholarship Fund New Hampshire, an in-state scholarship nonprofit that has operated for years, has positioned itself to administer federally backed scholarships in the state. The program is open to other qualifying organizations as well, and how many step forward will shape how far the credit reaches.
What to Watch Next
First, the size of the state’s approved list. A single organization can administer scholarships statewide, but more organizations generally mean more reach into more communities.
Second, final Treasury regulations, which are expected to settle questions donors and organizations are currently planning around rather than answering.
Third, donor participation in the first year. The credit is capped per taxpayer, which means the total available to New Hampshire students depends less on a handful of large gifts than on how many people take part.
Where AFC Scholarship Fund Fits
We are preparing to serve donors and families in participating states when the program becomes available on January 1, 2027.
If you want to follow what happens next in New Hampshire, or understand how the credit would apply to your own situation, you can find out more about how the Education Freedom Tax Credit works and sign up for updates as the rules are finalized.
Yes. Gov. Kelly Ayotte announced the state's participation on January 29, 2026, and the legislature passed HB 1774 in June 2026 to direct state agencies to carry it out.
Not before January 1, 2027. Contributions given earlier may be charitable gifts, but they cannot qualify for the federal credit, and the credit for a 2027 gift is claimed on a 2027 federal return filed in 2028.
Eligible taxpayers may claim a dollar-for-dollar federal tax credit of up to $1,700 (Treasury rules pending). The cap is set in the statute itself and applies per taxpayer.
Under HB 1774, the state Department of Education is responsible for building and submitting New Hampshire's list of qualifying scholarship organizations to the federal government. Children's Scholarship Fund New Hampshire is the most visible candidate, and other qualifying organizations may also apply.
Families earning up to 300% of their area median gross income. Because the figure is regional rather than statewide, the ceiling differs depending on where in New Hampshire a family lives.
