When Does the Education Freedom Tax Credit Start? Key Dates for 2027

The Education Freedom Tax Credit (EFTC) initiative begins January 1, 2027, opening a new pathway to support K-12 educational scholarships through qualifying federal tax credits.

Beginning January 1, 2027, eligible taxpayers can begin making qualified contributions for the 2027 tax year, subject to the applicable rules and participating Scholarship Granting Organizations (SGOs).

Families may also begin benefiting from qualifying scholarships in 2027 as participating organizations establish their application and award processes.

Here are the dates that matter.

Key Education Freedom Tax Credit Dates

Date	What Happens
July 4, 2025	Federal legislation establishing the EFTC becomes law
October 2, 2026	U.S. Treasury and the IRS publish proposed and temporary regulations
December 1, 2026	Deadline for public comments on the proposed regulations; temporary regulations become effective
January 1, 2027	First calendar year for qualifying contributions and scholarship distributions; initial state participation procedures apply
During 2027	Eligible taxpayers make qualified contributions to participating SGOs
2028 tax-filing season	Taxpayers claim credits for qualifying 2027 contributions when filing their 2027 federal returns

The initial 2027 state-list process includes transitional timing provisions, so January 1 is not necessarily an absolute deadline for every state’s participation.

What Needs to Happen Before Scholarships Become Available?

The EFTC initiative involves several participants working together.

First, a state must elect to opt-in and submit a qualifying list of Scholarship Granting Organizations under federal requirements.

An SGO must meet federal eligibility and operational requirements to receive qualified contributions.

The organization can then support scholarships for eligible students in accordance with the applicable federal requirements.

Because participation and implementation can vary, scholarship availability may differ by state and organization.

Can I Make a Qualified EFTC Contribution in 2026?

No. Contributions made during the 2026 calendar tax year do not qualify for the new Section 25F federal tax credit.

The credit applies to taxable years ending after December 31, 2026.

For calendar-year individual taxpayers, 2027 is the first contribution year.

If you’re interested in participating, 2026 is an opportunity to learn about the requirements, review your tax situation, and prepare for the initiative’s launch.

When Can Families Apply for EFTC Scholarships?

The federal start date does not establish one universal scholarship application date.

Scholarship availability will depend on state participation, SGO readiness, eligibility requirements, and application procedures.

Families should look for information from participating organizations serving their state and avoid assuming that every scholarship application will open on January 1.

What Should Taxpayers Do Before 2027?

Preparation can make participation easier.

Learn how the credit works, determine whether you may have sufficient federal income tax liability, and understand the qualifications for an eligible contribution.

You should also confirm that your intended SGO appears on the applicable IRS list when you make your contribution.

For more than 25 years, ACE Scholarships has helped families access educational opportunities. Through the EFTC initiative, ACE is preparing to extend that work as states and organizations implement the new requirements.

Bringing It All Together

The Education Freedom Tax Credit begins in 2027. Although the federal start date is established, the timing of scholarship applications and availability may vary, so check your state’s guidelines.

Explore the EFTC initiative at educationfreedom.org to understand how you can prepare for 2027 and help make more educational opportunities possible.