Education Freedom Tax Credit for scholarships
Unlocking the Potential of America’s Academic Future
The federal Education Freedom Tax Credit gives taxpayers a no-cost vehicle to bolster education in America and provides families access to stronger school options and academic services.
Sign up NOW to stay informed on all the latest opportunities and developments of this exciting new federal tax credit for scholarships.
Education Freedom Tax Credit for scholarships
Unlocking the Potential of America’s Academic Future
The Education Freedom Tax credit gives taxpayers a no-cost vehicle to bolster education in America and provides families access to stronger school options and academic services.
Sign up NOW to stay informed on all the latest opportunities and developments of this exciting new tax credit for scholarships.
What Is the Education Freedom Tax Credit for scholarships?
A federal initiative to expand educational freedom
Beginning in January 2027, this new Education Freedom Tax Credit opportunity could empower millions of families by generating funding for scholarships that allow America’s K-12 students the ability to choose the educational environment, services, and support that meet their unique learning needs.
Educational opportunities no longer need to be dictated by zip code but can instead be curated by parents who know their children best.
Scholarships are funded entirely through private donations, not taxpayer dollars.
Donors receive a dollar-for-dollar federal tax credit (up to $1,700), making this an innovative, powerful, cost-effective way to expand opportunities and unleash educational freedom — all without compromising public school funding.
Scholarship dollars can be used for:
“We’ve seen firsthand how educational choice lifts lives. This Education Freedom Tax Credit for scholarships delivers the opportunity to scale that freedom nationwide.”
Norton Rainey, CEO of ACE Scholarships
Timeline and Rule-Making Information
Note: Please note this is not a defined timeline but is based on prior rulemaking timelines.
Some guidance may not be issued until 2027.
Empowering Donors and Parents Through a Tax Credit
How It Works
For Families
Scholarships may be provided to students:
From households earning up to 300% of the area median income
Who are enrolled or eligible to enroll in public school
Beginning in 2027, the new Education Freedom Tax Credit for scholarships has the capacity to bring educational freedom to families across America in a truly unprecedented manner by offering a dollar-for-dollar tax credit of up to $1,700 for individuals who donate to qualifying nonprofit Scholarship Granting Organizations (like ACE Scholarships!). This is exciting news because every child deserves access to an excellent education, regardless of their zip code.
As organizations evaluate the possibility of forming Scholarship Granting Organizations (SGOs) in response to the passage of the federal tax credit for scholarships, they will soon discover the overwhelming administrative and technological challenges of the effort. ACE is uniquely positioned to meet this need through its proven platform and more than 25 years of scholarship granting experience – combining experienced people, streamlined processes and executional proficiency.
ACE offers a smarter solution – a partnership that leverages its established infrastructure and innovative technology in a mutually beneficial collaboration. This means organizations can avoid the operational complexities and startup costs of establishing and operating an SGO while still taking advantage of the federal tax credit opportunity to expand their impact.
How It Benefits Every Part of the ACE Community
For Schools
ACE Scholarships partners with schools to expand access through federal tax-credit scholarships, helping increase enrollment, foster innovation, and preserve school autonomy. Eligible scholarship funds can be used for tuition, fees, supplies, technology, public-school courses, extended day programs, tutoring, and special-needs services.
Families
The Education Freedom Tax Credit scholarship gives families real educational choice by covering tuition, fees, tutoring, therapies, technology, and other eligible expenses—so parents can choose the school and support that fits their child, not their income or zip code. Eligible students are those from households up to 300% of area median income who are enrolled in, or eligible to enroll in, public school.
Opt-In
The Education Freedom Tax Credit can expand school choice for families at no cost to states—if states opt-in. Governors must opt-in each year by January 1 or risk losing scholarship dollars to other states, meaning local students miss out on tuition, tutoring, special education, technology, and other eligible educational supports.
Ways to Support
There are multiple ways you can be active in supporting the successful implementation of the Education Freedom Tax Credit. From helping spread the word and encouraging leaders to opt-in, to funding scholarships at no-cost and expanding our network of partner schools and organizations, we invite you to get involved.
Contact Us
For press or media related concerns, please email [email protected]
You can click the link below to sign up for our Education Freedom Tax Credit mailing list to stay up to date on ongoing developments and opportunities.
