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EFTC BEGINS JANUARY 1, 2027

Public School ChoiceSGO AdministratorsPublic School Choice SGO Administrators
For Individual Taxpayers

Support Students With a Qualifying Contribution

Eligible individual taxpayers who make a qualifying cash contribution to a participating Scholarship Granting Organization may be able to claim a federal income-tax credit of up to $1,700 under Section 25F.

Estimate Your CreditLearn About the EFTC

PSC is an independent private administrator. PSC is not a government agency and does not itself award scholarships or receive Section 25F contributions unless a separately identified participating SGO is involved.

The Education Freedom Tax Credit creates the opportunity. Scholarship Granting Organizations administer the scholarships. PSC provides the infrastructure that helps those organizations operate.

How It Works

How the Credit Works for Donors

The contribution and the credit follow a straightforward sequence, but the details matter for tax purposes.

1. Choose a Participating SGO

Review the state participation directory and select a Scholarship Granting Organization on an applicable state's official SGO list.

2. Make a Qualifying Cash Contribution

The contribution must be made in cash and cannot be earmarked for a particular student.

3. Keep Your Records

The SGO furnishes contribution records. Retain them to support any federal tax-credit claim.

4. Claim the Applicable Credit

Consult a qualified tax professional to determine how the credit applies to your federal return.
Eligibility and Limits

What Donors Should Know

  • Available to individual taxpayers who make a qualifying cash contribution
  • The credit cannot exceed $1,700 per eligible taxpayer per year
  • The credit is further limited by the taxpayer's federal tax liability
  • The credit is generally nonrefundable
  • Unused credit may carry forward up to 5 succeeding tax years
  • The recipient SGO must appear on a participating state's official SGO list
  • A contribution cannot be earmarked for a particular student
  • Any state tax credit for the same contribution may affect the federal credit

Nonrefundability

The EFTC is generally nonrefundable. It may reduce eligible federal income-tax liability, but it does not create a refund beyond the amount otherwise permitted under federal law.

Carryforward

If the full allowable credit cannot be used in the contribution year, unused credit may be eligible to carry forward for up to 5 succeeding tax years, subject to applicable rules.

Documentation

Retain the contribution records furnished by the participating SGO. Documentation requirements remain subject to final Treasury and IRS guidance.
Where Contributions Go

What Scholarships Can Support

Participating SGOs award scholarships that families may use for qualified K–12 education expenses.

  • Tuition and fees

    Tuition and required fees at an eligible elementary or secondary school.

  • Academic tutoring

    Qualifying tutoring delivered by an approved provider.

  • Books and instructional materials

    Curriculum, texts, and course materials.

  • School supplies and equipment

    Required supplies and academic equipment.

  • Special-needs services

    Qualifying services for students with documented needs.

  • Computer technology and equipment

    Devices used for qualifying instruction.

  • Internet access and related services

    Connectivity used for instruction.

  • Certain uniforms

    Required uniforms, where permitted.

  • Certain transportation expenses

    Transportation to and from instruction.

  • Extended-day programs

    Before- and after-school academic programs.

  • Other qualifying supplementary educational services

    Additional services confirmed by the participating SGO.

Important Disclosures

Read Before You Contribute

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Use the donor estimator to get a preliminary, educational estimate and find a participating SGO.

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