What Is the Federal Scholarship Tax Credit (FSTC)?
The Federal Scholarship Tax Credit (FSTC), also known as the Education Freedom Tax Credit (EFTC), is a federal tax credit designed to encourage donations that help students access educational opportunities.
In simple terms, it creates a way for eligible taxpayers to support scholarship organizations that help families pay for qualifying educational expenses.
How Does the Program Work?
A taxpayer donates to an approved Scholarship Granting Organization (SGO).
The individual donor receives a federal tax credit of up to $1,700 for qualifying contributions, subject to federal requirements.
The SGO awards scholarships to eligible K–12 students for qualifying educational expenses.
When Can I Start Donating?
Donations through the Federal Scholarship Tax Credit (FSTC) program will begin being accepted on January 1, 2027.
We’ll share more information as the launch approaches, including how to make a donation and the participating Scholarship Granting Organizations (SGOs) you can support. Check back soon for updates!
Where Can I Learn More?
For additional information about the program and federal requirements, visit the IRS Federal Scholarship Tax Credit overview.