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.
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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.
More To Explore
Treasury Just Released Major Guidance on the Education Freedom Tax Credit. Here’s What It Actually Means.
The U.S. Department of the Treasury released a detailed preview of the regulatory framework for the new federal Education Freedom Tax Credit. There is a lot of good news to report — here’s what it means in plain English.
What Happens If the Education Freedom Tax Credit Goes Away?
Legislation has been introduced to repeal the EFTC before it launches. Here’s what families, donors, and students would lose if the Education Freedom Tax Credit is eliminated.
Tax Credit vs. Voucher: What’s the Difference and Why Does It Matter?
The Education Freedom Tax Credit is not a voucher. Learn the key differences between tax credit scholarships and school vouchers—and why the distinction matters for families and public schools.
Find out if you qualify for the Education Freedom Tax Credit
Check now for free
What Can EFTC Scholarship Funds Be Used For?
A scholarship is only as good as what it can actually pay for. Here’s what EFTC scholarship funds cover — and what they don’t.
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.
Can I Donate to an SGO in Another State?
One of the EFTC’s most powerful features is geographic freedom. Donors can support school choice in any state — and claim the same federal tax credit regardless of where the SGO operates.
How Do I Find a Qualified SGO? A Donor’s Evaluation Guide
Not every organization that says it supports school choice is federally qualified to generate the EFTC. Here’s how to evaluate any SGO before you give — and the six questions that separate credible from questionable.
Why Is the Education Freedom Tax Credit Suddenly in the News?
The Education Freedom Tax Credit is making headlines. Here’s what’s actually happening, what the EFTC is, and what it means for families and donors.
What Happens to Your Donation After You Give to an SGO?
Donor, SGO, student — that’s the chain. Here’s a plain-English breakdown of how your EFTC contribution flows from the moment you give to the moment a student gets a scholarship.
School Choice and Academic Outcomes: What 30 Years of Research Actually Shows
The debate over school choice is often treated as ideological. The research record — thirty years of it — suggests it should be treated as empirical. This piece reviews what the peer-reviewed evidence actually shows on school choice: where it is strong, where it is mixed, and what it means for donors who are evaluating the Education Freedom Tax Credit as a giving vehicle.
Is Giving to an SGO the Same as Church Giving?
The envelope goes in the plate every Sunday: Same time. Same fold. Same quiet certainty.
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.