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Redirect what you owe in federal taxes to give more children access to the educational opportunities, resources, and learning environments they need to thrive.

  1. You make a contribution
  2. Students Receive Funds for Educational Opportunities
  3. You Get Credit Toward What you owe IN taxes

How Your Support Makes an Impact

The Education Freedom Tax Credit (EFTC) creates a new way to fund K–12 scholarships and expand educational opportunities.

Beginning October 2026, taxpayers can commit to claim their federal tax credit for the 2027 year. ACE Scholarships brings more than 25 years of proven experience to help turn EFTC contributions into life-changing impact for students.

Contribute to ACE Scholarships and receive up to $1,700 in federal tax credits per taxpayer, or $3,400 for married couples filing jointly.

Contributions can come from all 50 states; only families in states that have opted in can apply for scholarships.

Together, we can Make It Possible.

More scholarships &
resources funded.

eftc ic community
eftc ic books

More families can afford to choose the education that best fits their child’s needs.

More kids can realize
their potential.

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What if you could make a child s potential possible

What if you could make a child’s potential possible?

For every child, the future holds limitless possibilities—from what they might invent, or explore… to who they might eventually become. But without access to educational opportunities that are right for them, realizing their potential can seem impossible.

Now, the EFTC changes that.

Contribute to ACE Scholarships and give children access to the resources and learning environments they need to thrive. In return, you’ll receive a dollar-for-dollar federal tax credit.

ACE Brings Proven Experience

ACE Scholarships has been connecting scholarship funding with students and families for more than 25 years.

Now, ACE is putting that experience to work for the EFTC.

ACE is one of the nation’s largest nonprofit K–12 Scholarship Granting Organizations (SGOs). We bring decades of scholarship experience, proven systems, and trusted technology built around the real needs of families, schools, and partners.

121,000+
Scholarships delivered

$395M+
Distributed in scholarships and Education Savings Accounts

More than 25 years
Expanding educational opportunity

ACE Brings Proven Experience

Where Do You Fit In?

The EFTC creates unique opportunities for different people. Choose the path that sounds like you.

Families & Community

I want to claim my federal tax credit or learn how to apply for an EFTC scholarship.

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Strategic Partners

I want to expand scholarship opportunities for students and learn how ACE and EmpowerEd by ACE Scholarships™ can help.

Families Image
quote

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

Stay Connected

Get updates about scholarships, educational opportunities, and EFTC participation in your state.

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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.