Education Freedom Tax Credit: 2027 family guide

The Education Freedom Tax Credit (EFTC), also called the Federal Scholarship Tax Credit (FSTC), encourages donations that fund K–12 scholarships. Those scholarships can help pay for your child’s education, including learning software and eligible equipment. The federal program begins January 1, 2027. Scribble’s scholarship offer starts in March 2027.

EFTC, FSTC, ECCA and SGO: what’s the difference?

Treasury uses both EFTC and FSTC for the credit under Section 25F. The original ECCA proposal explains the older name; use the enacted law and current guidance for today’s rules.

How does the Education Freedom Tax Credit work?

1. Donors contribute. Individuals give cash to a qualifying SGO in a participating state.
2. Donors claim a tax credit. Eligible donors can reduce their federal income tax by up to $1,700 per individual annually for qualifying contributions, beginning in 2027.
3. SGOs award scholarships. Families apply to the organization, which verifies eligibility and decides awards based on its process and available funding.
4. Families use their awards. Follow the SGO’s instructions to pay for approved education expenses.

The $1,700 limit is the individual donor’s tax-credit limit, not the student’s scholarship limit. Your child’s award is set by the SGO. You do not have to donate to apply for a scholarship, and donations cannot be earmarked for a particular child.

Who is eligible for a scholarship?

The federal rules set two basic requirements:

• Your child is eligible to enroll in a public elementary or secondary school.
• Your household’s income for the calendar year before you apply is no more than 300% of area median gross income — three times the median for your area.

There is no single nationwide dollar limit. The scholarship organization checks your household income and family size. Your state must participate, and an award depends on the organization’s application process and available funding.

What can a scholarship pay for?

Eligible costs include tuition, tutoring, books, supplies, educational software and computer equipment. The rules also cover certain special-needs services and school-related costs. The full categories and conditions are in Section 530(b)(3).

An iPad and compatible Apple Pencil may qualify as learning equipment. The scholarship organization confirms the items, amount and payment process for your award. Get its purchasing instructions before buying.

What does this mean for Scribble?

We’re partnering with a scholarship granting organization to offer eligible families 100% coverage of Scribble software costs during their awarded period, starting in March 2027. Some awards may also cover 100% of the cost of a compatible iPad and Apple Pencil. Equipment coverage depends on approval, funding and the award’s terms.

Join Scribble’s scholarship email list for application details and next steps. You only need your email to join; we’ll explain how to apply when applications are available.

How do I get started?

1. Sign up for updates. Join the list on our scholarship page.
2. Learn how to apply. We’ll share the scholarship organization’s requirements and application instructions.
3. Get your scholarship. Apply through the organization, then follow the purchasing or access instructions in your approved award.
4. Master handwriting. Start learning with Scribble on a compatible iPad and Apple Pencil.

Joining the email list is the first step for updates; the scholarship application and award come through the SGO. Our guide to scholarship granting organizations explains their role and where to find official information.

Is my state participating?

The IRS list dated 2026-09-14 records advance elections from 30 states. An advance election is a state’s participation step, not confirmation of an individual SGO’s listing or an open family application. “Not listed” describes this dated source, not a permanent decision by a state.

State links also explain existing state-funded programs. For example, Arizona ESA exists separately even though Arizona is not on this reviewed federal list. Check the IRS source for changes after the list date.

A few common questions

What are ECCA scholarships?

“ECCA scholarships” is shorthand people use for scholarships associated with the earlier Educational Choice for Children Act proposal. The enacted federal tax credit is known as EFTC or FSTC. Apply through a qualifying SGO under the current program’s rules.

Does every child receive $1,700?

No. That is the annual federal tax-credit limit for a qualifying donor. Your child’s award is set by the scholarship organization.

Do I have to donate to get a scholarship?

No parent donation is required by the federal student eligibility rules. Donations cannot be earmarked for a particular child.

Can public-school or homeschool families apply?

Public-school students can qualify. Homeschool families should check the organization’s requirements and how their state defines an eligible school arrangement.

Is this the same as my state’s ESA or voucher?

No. Those are separate programs with their own applications and spending rules. Our state funding directory explains the options.

Sources

• Treasury: Education Freedom Tax Credit guidance, October 1, 2026
• Senator Young: original ECCA proposal, February 4, 2025
• IRS: Federal Scholarship Tax Credit and participating states
• Section 25F: student eligibility and scholarship rules
• Section 530(b)(3): eligible education expenses

Treasury’s October 1 announcement describes proposed implementation regulations and companion temporary regulations. Proposed details are not final rules; follow official guidance as implementation develops.

Reviewed 2026-10-12. The state list retains the IRS source date shown above; check official guidance for changes.