EFTC BEGINS JANUARY 1, 2027THE EDUCATION FREEDOM TAX CREDIT BEGINS JANUARY 1, 2027
See the 2027 timelineThe Education Freedom Tax Credit begins January 1, 2027, and several mechanics remain subject to final Treasury and IRS guidance. This page records what has changed, when it changed, and what it means for organizations, donors, and families.
|Operational readiness
Organizations intending to operate a scholarship program at launch should be resolving governance decisions, account-segregation design, and application-cycle planning now rather than after state listings are published.
|State activity
Every jurisdiction now has a recorded status entry, election-date field, and SGO listing stage. Statuses remain informational and should be verified against official state and federal sources.
|Federal guidance
Filing-status treatment of the applicable annual maximum and certain substantiation details are not yet final. PSC materials state open items explicitly rather than assuming a favorable interpretation.
|Platform
Participating organizations can configure branded contribution, application, provider, and scholarship pages in advance, with contribution and application intake gated until the organization is listed and ready.
|Operational readiness
The recurring obligations of a participating SGO — acknowledgments, fund segregation, eligibility documentation, and reporting — are documented as an operating reference for boards and staff.
These items are unresolved. PSC states them as open rather than assuming an outcome.
Filing-status treatment of the applicable annual maximum remains subject to final Treasury and IRS guidance. This estimator applies the configured annual maximum to every filing status until guidance is finalized.
Each state's decision to participate, and the organizations it lists, determine where contributions may be made and scholarships awarded.
The acknowledgment and recordkeeping details taxpayers and organizations must retain are expected to be clarified in guidance.
Where a state credit applies to the same contribution, the federal credit is reduced accordingly. Coordination mechanics vary by state.
PSC tracks federal guidance and state activity as part of its administration services. If your organization is preparing for launch, we can walk your leadership through current conditions.