The Education Freedom Tax Credit is a federal program enacted into law through the Educational Choice for Children Act. It provides individual taxpayers with a federal income tax credit for qualified cash contributions to approved Scholarship Granting Organizations, which use those contributions to fund K–12 education scholarships for eligible students.

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.

The Educational Choice for Children Act is a federal law passed in 2025 that grants individual income tax credit for contributions to approved Scholarship Granting Organizations that fund K–12 education scholarships for eligible students.

The Federal Scholarship Tax Credit is a legacy name for the Education Freedom Tax Credit. While they are one in the same program, the current and official name of the program is the Education Freedom Tax Credit.

Yes. The Educational Choice for Children Act has been enacted into law. The U.S. Treasury Department and the Internal Revenue Service are now issuing regulations and guidance to implement and administer the program stemming from this law, the Education Freedom Tax Credit program.

Only individual taxpayers who are U.S. citizens or residents may claim the federal scholarship tax credit. Families and students do not claim the tax credit.

The federal scholarship tax credit is a 100% credit and is capped at $1,700 per taxpayer per year (for households filing jointly, if both members individually contribute, the amount may be up to $3400 per household per year). The credit is non-refundable. If a taxpayer does not have sufficient tax liability to use the full credit in one year, unused amounts may be carried forward for up to five additional tax years.

The credit applies to taxable years ending after December 31, 2026. Contributions made during those taxable years may be eligible for the credit, subject to applicable requirements.

Yes, but the federal credit must be reduced by the amount of any state tax credit received for the same qualified contribution as federal law does not allow a double benefit for the same donation. However, separate contributions may be made to both federal and state programs in order to receive all benefits associated with those programs.

No. Federal law explicitly prohibits claiming a charitable deduction for any portion of a contribution for which the federal scholarship tax credit is allowed on the basis that this contribution is a 100% tax credit.

A Scholarship Granting Organization is a nonprofit organization that qualifies under federal law to receive contributions eligible for the federal scholarship tax credit and to award K–12 education scholarships to eligible students. SGOs must meet specific statutory requirements and be approved through a state’s participation process.

Under federal law, Scholarship Granting Organizations must:

 Be a 501(c)(3) public charity and not a private foundation
 Spend at least 90 percent of their income on qualified scholarships
 Maintain separate accounts for qualified contributions
 Verify student household income and eligibility
 Prohibit earmarking of contributions for specific students
 Serve students attending more than one school
 Prioritize renewal students and eligible siblings as required

Eligible students are those from households with gross incomes at or below 300% of the area of residence median income as defined by the U.S. Department of Housing and Urban Development and who are eligible to enroll in a public elementary or secondary school.

Families generally do not have to count scholarships from the federal scholarship tax credit program as taxable income on their federal taxes, provided the funds are used for qualified educational expenses. These scholarships are treated as tax-free, similar to other qualified educational assistance.

Scholarships may be used for qualified elementary and secondary education expenses, as defined under federal law. These include expenses eligible under Coverdale Education Savings Account rules, such as tuition, fees, tutoring, special needs services, books, supplies, uniforms, transportation, technology, and certain extended-day programs.

Yes. States must voluntarily opt in to the federal program. Participating states submit an annual list of approved Scholarship Granting Organizations to the U.S. Treasury.

While larger organizations provide valuable broad-based assistance, Renew Scholarships is uniquely dedicated to the preservation of a biblical worldview. We believe that education is a sphere of sovereignty belonging to the family, not the state. Our mission is specifically designed for families and donors who prioritize confessional, Christian education. We don’t just provide a tuition check; we partner with schools that are committed to the Biblical Worldview of academic excellence and spiritual formation.

Stewardship is a primary theological conviction for our team. We maintain a lean administrative structure to ensure that the maximum amount of every dollar reaches the classroom. Under federal guidelines, a minimum 90% of our revenue is dedicated directly to student scholarships. We provide regular Impact Reports to our donors, treating every contribution not as a mere transaction, but as an investment in the next generation of the Church. Your participation fuels the greater mission to provide every child with a biblical worldview education. After program expenses, every dollar helps expand our reach to families and schools across the country.

No. A cornerstone of the federal tax credit model is that the money remains private. Because the funds flow from the individual taxpayer to a private SGO, and then to the family, the government does not “fund” the school. This structure was intentionally designed to protect the religious liberty of Christian institutions, ensuring they remain free to teach according to their convictions without state overreach.

To participate in the Education Freedom Tax Credit (EFTC) program through Renew Scholarships, schools must navigate a simple three-step connection process:

Verify State Eligibility: Your school must be located in a “covered state” that has formally opted into the federal program and submitted its registry of certified SGOs to the U.S. Treasury.

Submit the School Form: Interested administrators should complete the registration form via our School Portal. As part of our commitment to faith-based education, schools must submit a Statement of Faith to verify they are Christian-based before approval.

Portal Connection & Training: Once approved, your school will be granted access to its own secure portal. Our team will provide training on how to use the system to manage students, track awarded scholarships, and communicate with donors.

What features does the School Portal provide?

Our portal is designed to handle the administrative heavy lifting so you can focus on your students. Key features include:

Custom Branding: Schools can brand their donation page with their own logo and colors.

Student & Award Tracking: Easily input student data and track scholarship awards by semester or school year.

Automated Reporting: Generate real-time reports on pledges, received funds, and scholarship distributions, exportable to PDF or Excel.

Donor Engagement: View and communicate directly with donors who have chosen to support your school, including the ability to send automated thank-you notes and reminders.

Staff Permissions: Assign specific roles (e.g., accountant, teacher, volunteer) with customized access levels to maintain security and accountability.