The EFTC, explained — overview, states, and every FAQ

A federal program enacted through the Educational Choice for Children Act. It gives individual taxpayers a federal income tax credit for qualified cash contributions to approved Scholarship Granting Organizations (SGOs), which use those contributions to fund K–12 education scholarships for eligible students.

The federal law, passed in 2025, that created the individual income tax credit for contributions to approved SGOs funding K–12 scholarships for eligible students.

A legacy name for the same program. The current, official name is the Education Freedom Tax Credit.

Yes. The Educational Choice for Children Act has been enacted into law. The U.S. Treasury and IRS are now issuing the regulations and guidance needed to implement and administer the program.

The credit applies to taxable years ending after December 31, 2026. Contributions made during those years may be eligible for the credit, subject to applicable requirements. Renew Scholarships opens its contribution and application portals on January 1, 2027.

Yes — participation is voluntary. States must opt in to the federal program, and each participating state submits an annual list of approved SGOs to the U.S. Treasury.

Only individual taxpayers who are U.S. citizens or residents. Businesses and other entities cannot claim it — and families receiving scholarships don't claim it either.

It's a 100% credit capped at $1,700 per taxpayer per year. In a household filing jointly, if both spouses contribute individually, the household total may reach $3,400 per year.

The credit is non-refundable — but if you can't use it all in one year, unused amounts carry forward for up to five additional tax years.

Yes — but the federal credit must be reduced by any state tax credit received for the samecontribution; federal law doesn't allow a double benefit for one donation. You can, however, make separate contributions to federal and state programs and receive each program's benefit.

No. Because the contribution earns a 100% tax credit, federal law explicitly prohibits also claiming a charitable deduction for any portion of it.

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

Generally, no. Scholarships are treated as tax-free — similar to other qualified educational assistance — provided the funds are used for qualified educational expenses.

Qualified elementary and secondary education expenses as defined under federal law — the categories recognized by Coverdell Education Savings Account rules:

• Tuition and fees
• Tutoring and special-needs services
• Books and supplies
• Uniforms and transportation
• Technology and certain extended-day programs

A nonprofit that qualifies under federal law to receive credit-eligible contributions and award K–12 scholarships to eligible students. SGOs must meet specific statutory requirements and be approved through a state's participation process.

• Be a 501(c)(3) public charity — not a private foundation
• Spend at least 90% of 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

Yes. Renew Scholarships is a 501(c)(3) nonprofit operating as an SGO under the EFTC program. Approval works state by state:

• Legal standing: 501(c)(3) status — the primary federal requirement.
• State certification: each participating state lists its certified SGOs with the U.S. Treasury annually.
• Target participation:we're actively pursuing inclusion in the 28+ states that have signaled intent to participate (as of March 2026).
• Compliance readiness: multi-ledger accounting and the strict 90/10 expenditure rule are already in place.

Timing note:the credit applies to donations beginning in the 2027 tax year. Before claiming it, verify that Renew Scholarships appears on your state's Treasury-certified list for that calendar year.

Larger organizations provide valuable broad-based assistance; Renew Scholarships is uniquely dedicated to preserving a biblical worldview. We believe education is a sphere of sovereignty belonging to the family, not the state — so our mission is built specifically for families and donors who prioritize confessional Christian education. We don't just send a tuition check; we partner with schools committed to academic excellence and spiritual formation.

Stewardship is a core conviction. Under federal guidelines, a minimum of 90% of revenue goes directly to student scholarships, and we keep our administrative structure lean so the maximum amount of every dollar reaches the classroom. Donors receive regular impact reports — we treat every contribution as an investment in the next generation of the Church.

No. A cornerstone of the tax-credit model is that the money remains private — it flows from the individual taxpayer to a private SGO, then to the family. The government never funds the school. This structure was intentionally designed to protect the religious liberty of Christian institutions, so they remain free to teach according to their convictions.

• Verify state eligibility: your school must be in a covered state that has opted in and submitted its SGO registry to the U.S. Treasury.
• Submit the school form via our School Portal, including a Statement of Faith verifying the school is Christian-based.
• Connect and train: once approved, your school gets its own secure portal and training on managing students, tracking awards, and communicating with donors.

• Custom branding — your logo and colors on your donation page
• Student & award tracking by semester or school year
• Automated reporting — real-time reports on pledges, funds, and distributions, exportable to PDF or Excel
• Donor engagement — message supporters, with automated thank-you notes and reminders
• Staff permissions — customized access levels for accountants, teachers, and volunteers