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Education Freedom Tax Credit for Schools

Spend Less. Scholarship More. And Earn 3% Back.

The Education Freedom Tax Credit (EFTC) creates a new opportunity for schools to help more students access K–12 scholarships.

EmpowerEd by ACE Scholarships™ provides the technology and scholarship infrastructure your school needs to participate while staying focused on students and families.

What the EFTC Means for Schools

The EFTC can create new scholarship opportunities for eligible students and families.

Through EmpowerEd, schools can access scholarship technology and established infrastructure without building their own systems from the ground up.

ACE brings more than 25 years of experience helping make educational opportunities possible for students and families.

What the EFTC Means for Schools
What the EFTC Means for Schools

Webinars

We offer regular webinars discussing the EFTC and what partnering with ACE could mean to you and your school. Sign up now to be a part of the next one! 

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Why Schools Choose ACE and
EmpowerEd

Partner Schools can engage their parents and supporter base in a powerful new way, introducing families to the EFTC initiative, generating scholarships for their institution, and securing a 3% marketing incentive to help fund operational expenses.

EmpowerEd combines scholarship technology with ACE’s experience serving students, families, and schools.

At no cost to you, ever.

Scholarship Management

Manage applications, scholarship administration, and funding through one platform.

School Marketplace

Help families discover your school and available scholarship opportunities.

Partner Dashboard

Access application information, student data, and scholarship activity in one place.

Contributor Tracking

Track EFTC contributions and access the information your school needs.

Operational Support

Build on ACE’s experience with scholarship administration, reporting, and operations.

Proven Experience

ACE has delivered more than 121,000 scholarships and distributed more than $395 million in scholarships and Education Savings Accounts.

How It Works for Schools

Connect With ACE

Explore how the EFTC and EmpowerEd can support your school.

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Get Started With EmpowerEd

Use established scholarship technology and infrastructure without building your own.

Families Apply

EmpowerEd supports student applications and the eligibility process.

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ACE Helps Manage
the Details

ACE and EmpowerEd help manage scholarship administration, funding, and reporting.

Students Access More Opportunities

Scholarships help eligible students access educational environments and resources where they can thrive.

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Make It Possible for More Students

Expand scholarship opportunities while staying focused on your students and families.

See how ACE Scholarships and EmpowerEd can support your school through the EFTC.

EFTC FAQs

The EFTC is a federal tax credit for eligible contributions to qualified SGOs. Those contributions help fund scholarships for qualifying K–12 educational expenses.

Eligible taxpayers make qualifying cash contributions to participating SGOs. They may then claim a federal income tax credit of up to $1,700 per taxpayer, or $3,400 for married couples filing jointly, for the qualifying contribution, subject to federal requirements and their federal income tax liability.

SGOs use qualifying contributions to provide scholarships that help eligible K–12 students access educational opportunities.

A Scholarship Granting Organization (SGO) is a qualifying nonprofit organization that receives contributions and provides scholarships for eligible K–12 students.

For an EFTC contribution to qualify for the federal tax credit, the SGO must meet federal requirements and be included on the applicable participating state’s SGO list.

Under the EFTC initiative, scholarship funds may be used for expenses incurred in connection with an eligible K–12 student’s enrollment or attendance at a public, private or religious school, including*:

  • Tuition, uniforms, transportation and other fees
  • Books and supplies
  • Academic tutoring
  • Extended day programs
  • Computer technology, equipment, or internet access
  • Educational therapies (e.g., occupational, speech, behavioral, physical)

*as defined by the U.S. Department of the Treasury

Yes. Beginning January 1, 2027, eligible taxpayers in all 50 states with a federal income tax liability can participate in the EFTC and receive a dollar-for-dollar tax credit of up to $1,700 per taxpayer, or $3,400 for married couples filing jointly. However, only states that have opted to participate in the federal tax credit can receive scholarship funding.

Yes. The IRS refers to the EFTC as the Federal Scholarship Tax Credit (FSTC). Both names refer to the same federal tax credit.

The SGO is responsible for administering qualifying contributions and scholarships in accordance with federal requirements. This includes determining student eligibility, distributing scholarships, maintaining required records, and meeting applicable compliance requirements.

A qualifying EFTC contribution must be made to an eligible SGO included on the applicable participating state’s list.