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Federal: 04 Homeschool Families

Education Freedom Tax Credit (EFTC): Homeschool Families

See an Overview of the EFTC Along with FAQs and Answers

Empowering Your Home: The EFTC and the New Educational Ecosystem

Education is a sacred stewardship. At its core, the Education Freedom Tax Credit (EFTC) program recognizes that God entrusted the training of children to parents, not the state. Our mission is to provide the resources for your sacred task, removing financial barriers while fiercely protecting your family’s God-given right to homeschool.

We offer support without interference. Accepting these funds does not change your curriculum, your mission, or your authority over your home. Because these scholarships are funded by private contributions to a Scholarship Granting Organization (SGO) rather than direct government spending, the program respects your right to choose materials that align with a biblical worldview.

Resources for Your Sacred Task: Qualified Expenses

The EFTC is designed to be flexible, allowing you to teach without limits. By linking federal Section 25F to Section 530, the law now recognizes a broad spectrum of home-based educational costs.

You can use scholarship funds for materials and services that best align with your family’s biblical worldview. Qualified expenses include:

  • Curriculum & Textbooks: Comprehensive programs, individual subject workbooks, and required reading materials.
  • Co-ops & Group Classes: Fees for homeschool cooperatives, specialized workshops, and local learning pods.
  • Technology & Tools: Tuition for virtual academies, digital courses, computer hardware, and internet access required for instruction.
  • Tutoring & Specialized Instruction: Services provided by licensed teachers or subject matter experts to supplement your home instruction.
  • Educational Therapies: Services for students with disabilities provided by accredited professionals.
  • Testing & Dual Enrollment: Fees for standardized testing, annual evaluations, or college-level courses taken during high school.

The “Double-Tap” Benefit: Integrating with 529 Plans

The OBBBA has transformed the utility of 529 plans for homeschooling families, creating a comprehensive educational savings ecosystem.

  • Expanded Limits: Families can now withdraw up to $20,000 annually from a 529 plan for K-12 expenses, doubling the previous $10,000 limit.
  • Homeschool Inclusion: Costs such as curriculum, tutoring, and instructional tools—previously disqualified—are now eligible 529 expenses.
  • Strategic Stacking: Your family is permitted to stack EFTC scholarships with 529 funds and other state-level choice programs, provided the combined funding does not exceed your total qualified educational expenses.

How Your Family Qualifies

To be eligible for an EFTC scholarship starting January 1, 2027, your household must meet the following standards:

  • Legal Enrollment Status: Your children must be of the age and legal status allowed to enroll in a public elementary or secondary school.
  • Income Threshold: Household gross income must not exceed 300% of the Area Median Gross Income (AMGI). For example, if the median income in your area is $70,000, your household could earn up to $210,000 and still qualify.
  • Verification: Eligibility is determined using your household’s annual income from the federal tax return of the calendar year prior to your application date.

Simple, Secure Application Process

We have built a process that is Your Table, Your Terms.

  • Create a Profile: Register your family through our secure SGO portal.
  • Verify Eligibility: Upload your federal income tax return from the prior calendar year.
  • Submit Educational Plan: Provide a brief verification of your intent to homeschool, consistent with your state’s regulations.
  • Receive Funding: Once approved, funds are managed through an easy-to-use account dedicated to your child’s education.

Frequently Asked Questions: Protecting Your Autonomy

We understand that for many families, the primary concern is whether financial support comes with “strings attached.” Our program is built on the principle of Support Without Interference. Here are the answers to the most common questions regarding the EFTC and your homeschool freedom.

Yes. Renew Scholarships is a 501(c)(3) nonprofit organization that operates as a Scholarship Granting Organization (SGO) under the federal Education Freedom Tax Credit (EFTC) program.

To be considered “approved” for federal tax credits, an SGO must meet specific criteria and be listed on a registry submitted to the U.S. Treasury. Renew Scholarships’ status is summarized below:

  • Legal Standing: Renew Scholarships is established as a 501(c)(3) nonprofit entity, a primary requirement for federal SGO eligibility.

  • State Certification: Approval is granted on a state-by-state basis. A state must formally “opt in” to the EFTC program and include Renew Scholarships on its annual list of certified SGOs submitted to the U.S. Department of the Treasury.

  • Target Participation: Renew Scholarships is actively seeking inclusion on registries in 28+ states that have signaled intent to participate as of March 2026.

  • Compliance Readiness: The organization has implemented the “multi-ledger” accounting and strict 90/10 expenditure rules (spending 90% of revenue on scholarships) required by the IRS to maintain good standing.

Important Timing Note: While the EFTC was signed into law in 2025, the tax credit is officially available for donations made beginning in the 2027 tax year. Donors should verify that Renew Scholarships appears on their specific state’s Treasury-certified list for the current calendar year before claiming the credit.

No. The Education Freedom Tax Credit is designed to be curriculum-neutral. Because these scholarships are funded by private contributions to a Scholarship Granting Organization (SGO) rather than direct government spending, the program respects your right to choose materials that align with a biblical worldview. You maintain full authority over the “what” and “how” of your child’s education.

No. The EFTC program does not alter existing state homeschool laws. You continue to follow the notification, testing, or portfolio requirements already established in your specific state. The SGO only requires documentation that the funds were spent on qualified educational expenses as defined by federal law.

Yes. We take the “Sacred Task” of parenting seriously, which includes protecting your family’s privacy.

  • Data Security: Our online portal uses industry-standard encryption to protect your tax and enrollment information.
  • Limited Sharing: Your information is used strictly for eligibility verification and scholarship administration. We do not sell or share family data with outside marketing or government agencies beyond what is legally required for tax compliance.

Flexibility is key. Because the scholarship follows the student, not the institution, you can adjust your educational approach as your child’s needs change. As long as the new expenses (books, online courses, etc.) fall under the category of qualified expenses, your funding remains secure.

Income limits vary by where you live because the cost of living varies. For example, the threshold in a major metropolitan area will differ from a rural county.

  • The Math: If the median income in your area is $70,000, your household could earn up to $210,000 and still qualify.
  • Verification: We handle the calculations for you once you provide your prior year’s tax return.

Apply for an EFTC Scholarship

Apply

The opportunity to submit an application goes live on January 1, 2027. On that day, the button above will take you to a custom, secure and dedicated portal through which you may apply.

In the meantime, please feel free to stay informed to keep up to date!

Also Consider Applying for a State Level Scholarship

For interest in applying for a state level scholarship completely separate from the EFTC, please consider one the programs below in which Renew Scholarships is currently operating.

Virginia EISTC Program
Kansas TCLISS Program