How the EFTC Works
The Education Freedom Tax Credit
Starting in 2027, a new federal tax credit lets you fund a scholarship for a child — and claim up to $1,700 back, dollar for dollar. Here’s exactly how it works.
Make a Donation
Starting in 2027, make a charitable contribution to a qualified Scholarship Granting Organization like the AFC Scholarship Fund.
AFC Issues a Scholarship
The SGO awards a scholarship to a student who needs it.
A student gets funded
Funds help cover real education costs — tuition, tutoring, books, and more — putting the right educational opportunity within reach.
Up to $1,700 Tax Credit
When you file, you claim a dollar-for-dollar federal tax credit of up to $1,700 — a credit, not a deduction.
VIDEO OVERVIEW
Watch our video to learn more about how the EFTC works.
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Find out if you qualify for the Education Freedom Tax Credit
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 see if you qualify — and get an estimate of your credit.
- Check your eligibility in under a minute
- See your estimated credit amount instantly
- Free, with no obligation
Featured Articles
What Is the Education Freedom Tax Credit?
The first federal school choice tax credit in American history allows eligible taxpayers to give to a qualified scholarship organization and reduce their federal tax bill dollar-for-dollar. Here’s everything donors need to understand before they give.
How the Education Freedom Tax Credit Works: A Step-by-Step Guide
Five steps from first dollar to federal tax credit. Here’s the complete, plain-English breakdown of how the EFTC works — and what donors need to do to make the most of it.
What Happens After I Donate? Your EFTC Timeline from Gift to Tax Filing
You’ve heard about the Education Freedom Tax Credit. You’re ready to give. But what happens next? Here’s every step — from writing the check to seeing the credit on your tax return.
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Find out if you qualify for the Education Freedom Tax Credit
Check now for free
Why We Put Families at the Heart of Everything
We recently launched a new website for the AFC Scholarship Fund.
Almost Every American Child Qualifies. The Harder Question Is Who Will Fund Them
A new analysis ran the federal eligibility test against real population data for the first time. The answer surprised almost everyone: the income ceiling for a K-12 scholarship under the Education Freedom Tax Credit reaches nearly nine of every 10 American schoolchildren. Here is what that number does, and does not, tell families, schools and donors.
Every Child Is Eligible. Whether a Home Counts as a “School” Is a Different Question
Two families can teach the same curriculum at the same kitchen table and reach different answers about whether a federal scholarship can pay for it. The reason sits in one cross-reference buried in the tax code, and Treasury has now confirmed it in writing.
Who Can Receive a Scholarship Under the Education Freedom Tax Credit? New Report Details Estimates for Every State
This difference between Indiana and Michigan is just one of the contrasts at the center of a report I published this week with the American Federation for Children. It asks a question that sounds simple but turns out to be a bit more complicated upon further investigation:
The Waiting Room: Why No State Has Certified SGOs Yet — and Why That’s Okay
Thirty states have said yes. The launch date is fixed. And yet, six months out, the number of officially certified scholarship organizations in America is exactly zero. Here’s why that’s the plan working and not failing.
What Your $1,700 Actually Gives: A Walk Through the 90% Rule
Every donor has wondered it: how much of my gift actually reaches a kid? For the Education Freedom Tax Credit, Congress didn’t leave the answer to chance. It wrote it into the law.
Before There Was a Federal Credit, There Was a Hurricane: The 25-Year Story Behind the EFTC
It’s the final chapter of a story that runs through a Phoenix statehouse, a Florida governor’s desk, a catastrophic hurricane, and four Supreme Court decisions.
The Map Is Half Full: Inside the Year America’s Governors Chose Sides on School Choice
One year ago, not a single state had signed up for the Education Freedom Tax Credit. Today, 30 are on the map — and the story of how they got there involves midnight signatures, three veto overrides, and a few political conversions nobody saw coming.
Find out if you qualify for the Education Freedom Tax Credit
Check now for freeStep 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.
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.
If you’re wondering whether your family qualifies, register your interest and we’ll help you find out.
Be Ready on Day One
The Education Freedom Tax Credit launches in 2027. Join the list and we’ll tell you the moment you can fund a scholarship and claim your federal tax credit.