Resources
Where every state stands on the Education Freedom Tax Credit, the primary source documents behind it, and answers to the questions our community asks most.
State participation
For a family to receive an EFTC scholarship, their state must opt in to the program. Governors are deciding now — here is where each one stands.
Click any state to see its status, governor, and what to do next.
Last updated July 26, 2026. JEFA notifies pre-registered families the moment their state’s status changes.
These states are participating. Their governors submit qualifying Scholarship Granting Organizations to the U.S. Treasury each year, and scholarships become available to families once the program begins January 1, 2027.
These governors have said publicly that they intend to participate but have not yet completed the formal opt-in. Watch for them to finalize before the program begins.
These governors have not announced a decision either way. Time is short — the program goes live January 1, 2027.
In these states the legislature passed an opt-in bill and the governor vetoed it. Absent an override or a reversal, families here will not be eligible for scholarships.
These governors have stated their states will not take part. Families here will not be eligible for scholarships unless the decision is reversed.
Click your state on the map to see who your governor is and where they stand. A short, respectful note from a constituent carries real weight — and the window to be heard closes when the program begins on January 1, 2027.
Donors: you can claim the credit no matter where you live — contributions flow to qualified SGOs in participating states. Your state's status does not affect your ability to give.
Families: scholarships require your state to opt in. New York has announced it will join but hasn’t finalized; New Jersey remains undecided. If you live in a state that hasn’t finalized, pre-register anyway — the moment your state joins, you’ll be first in line, and JEFA will tell you the day it happens.
Primary sources
The credit goes by several names — the Education Freedom Tax Credit (EFTC), the Educational Choice for Children Act (ECCA), the Federal Scholarship Tax Credit (FSTC), or simply §25F. They all refer to the same law. These are the government documents that define it.
The enacted law itself: the $1,700 individual credit, the five-year carryforward, the requirement that SGOs spend at least 90% of income on scholarships, and student eligibility at or below 300% of area median income. Enacted July 4, 2025 as part of Public Law 119-21.
Read the statute — U.S. CodeThe IRS’s official page for the credit, including the authoritative list of states that have filed an advance election to participate for 2027. If you want to confirm your state’s status from the government directly, this is the page.
View on IRS.govThe IRS’s first formal implementation step, requesting public comment on the questions §25F leaves open — state certification, SGO requirements, donor substantiation — ahead of proposed regulations.
Read the notice (PDF)Sets the exclusive process for a state to become a “covered state” for 2027 by filing Form 15714. Worth noting: the governor — or D.C.’s mayor — is the official authorized to submit it.
Read the procedure (PDF)The full FAQ
No — they’re all names for the same federal law. It began as the Educational Choice for Children Act (ECCA), was enacted as IRC §25F on July 4, 2025, and is commonly called the Education Freedom Tax Credit or the Federal Scholarship Tax Credit. JEFA operates under this one program.
Plan on $1,700. The statute caps the credit at $1,700 per taxpayer per taxable year, and the prevailing expert reading is that a married couple filing jointly receives a single $1,700 credit on their joint return. Treasury has not yet issued final guidance on this question — proposed regulations are expected by late September 2026 — so plan conservatively and consult your tax advisor.
Yes. A refund just means your withholding exceeded your final tax bill — it doesn’t mean you owed no tax. The credit reduces your total tax liability, so if you were due a refund, the credit makes that refund larger by the amount you gave. Anyone with at least $1,700 of federal tax liability gets the full benefit, and smaller liabilities carry the remainder forward up to five years.
No. The federal credit is available to individual taxpayers only. Business owners can of course give personally.
Potentially yes — but not for the same dollars. If your state has its own scholarship tax credit program, you may qualify for both by making separate contributions: one to a federally qualified SGO like JEFA, and one to a state-qualified organization. The same gift cannot generate both credits.
No. Unlike many state programs with annual credit caps, the federal program has no aggregate limit on total credits claimed nationwide. Every eligible taxpayer can claim up to $1,700 without competing for a limited pool.
Qualified K-12 education expenses as defined in federal law: tuition and fees, books and supplies, tutoring, online courses, educational technology, and special-needs services including therapies. Scholarships follow the student and their needs.
The SGO does — independently, based on eligibility and available funds. Donations cannot be earmarked for a specific student. By statute, SGOs must give priority to students who received a scholarship the prior year and to their siblings, which protects continuity for families once they’re in the program.
SGOs like JEFA verify household income and student eligibility, with oversight from the IRS and Treasury. Treasury’s June 2026 guidance preview outlines annual SGO audits and a unique donor-number system that lets the IRS match every claimed credit to a real donor — without donors ever giving their Social Security number to an SGO.
You can still donate and claim the full federal credit — your contribution funds scholarships in participating states. What’s lost is scholarships for families in your own state, which is why the remaining opt-in decisions matter so much to our community.
Starting with the 2027 tax year, for contributions made on or after January 1, 2027 — claimed on the return you file in 2028. Unused amounts carry forward up to five years.
Stay informed
States are opting in, guidance is being finalized, and January 1, 2027 is approaching. Pre-register with JEFA and we’ll keep you informed of exactly what matters to your family and your community.
