The Education Freedom Tax Credit gives taxpayers a no-cost vehicle to support Jewish education and provides families access to quality Jewish day schools and yeshivas.
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Beginning in January 2027, this federal initiative empowers families by generating funding for scholarships that allow K-12 students to choose the educational environment that meets their unique needs. Donors receive a dollar-for-dollar federal tax credit (up to $1,700), making this a powerful, cost-effective way to expand opportunities without compromising public school funding.
Individual donors can receive up to $1,700 per year as a 100% nonrefundable federal tax credit. Excess credits can be carried forward for up to 5 years. This is a no-cost vehicle to support Jewish education while reducing your tax liability dollar-for-dollar.
Scholarships are provided to students from households earning up to 300% of the area median income who are enrolled or eligible to enroll in public school. Scholarship funds can be used for private school tuition, educational technology, tutoring, special education services, and more.
Donations will be accepted starting
January 1, 2027Contact us today to be among the first to support Jewish education in your community!
Common questions about the Education Freedom Tax Credit
An SGO is a 501(c)(3) tax-exempt nonprofit organization that accepts donations and uses at least 90% of its income to fund K-12 education scholarships for eligible students. JEFA — the Jewish Education Fund of America — is a registered 501(c)(3) Scholarship Granting Organization that specifically funds Orthodox Jewish children's religious education. All contributions to JEFA are tax-deductible, and donors receive the additional benefit of the dollar-for-dollar Education Freedom Tax Credit.
No. The Education Freedom Tax Credit is a dollar-for-dollar credit, not a tax deduction. Every dollar you contribute to JEFA reduces your federal tax bill by exactly one dollar. You're simply choosing to redirect up to $1,700 that would otherwise go to the IRS.
A tax deduction merely reduces your taxable income — so a $1,700 deduction might save you a few hundred dollars depending on your bracket. A dollar-for-dollar tax credit directly reduces what you owe by the full amount. If you owe $5,000 and claim a $1,700 credit, you now owe $3,300. The entire $1,700 goes to children's education.
The law was signed on July 4, 2025. Taxpayers can begin claiming the credit for contributions made starting January 1, 2027. JEFA is accepting pre-registrations now so you'll be ready when the program launches.
Your state does not need to opt in for you to donate and receive the tax credit. Any taxpayer nationwide can contribute to a qualified SGO in a participating state and claim the credit. However, for students in your state to receive scholarships, your state must opt in. As of early 2026, 23 states have opted in.
Students must live in households earning no more than 300% of their area's median income and be eligible to enroll in K-12 schools. Most American families qualify. Scholarships can be used for tuition, fees, textbooks, tutoring, and other qualified education expenses.
Absolutely. You can contribute any amount up to $1,700 and receive a dollar-for-dollar credit for whatever you give. Even a $500 contribution means $500 less in taxes owed and $500 toward a Jewish child's Torah education.
