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Education Freedom Tax Credit · For Schools & Principals

New Scholarship Dollars — At No Cost to Your School or Students

The federal Education Freedom Tax Credit creates a new stream of private scholarship funding for eligible students at your Christian school. Donors fund it, families receive it, and it costs your school nothing to participate.

  • No application fee for schools or families
  • Scholarships cover tuition, enrollment fees, and required course costs
  • Works alongside any existing state voucher or scholarship programs
  • Donors receive a dollar-for-dollar federal tax credit — so giving is essentially free for them
Register Your School → Read the FAQs

Free · Takes 2 minutes

Program At a Glance
$1,700
Max credit per taxpayer per year ($3,400 for married filing jointly)
100%
Dollar-for-dollar credit — not a deduction
~96%
Of K–12 students nationally are eligible (per Treasury proposed regs)
Jan 1
2027 — contributions open
121.5 million American taxpayers are eligible to donate and claim the EFTC — nearly 3 in 4 tax filers. At just 10% participation, that's $18.8 billion a year for K–12 scholarships.
Learn about the Education Freedom Tax Credit in 2 minutes!

What Is the Education Freedom Tax Credit?

Timeline

How It Works for Your School

Three simple steps from registration to scholarships in students' hands.

1
Now — December 31, 2026
Register with Accord Kids
Complete the free online registration form. Accord Kids will contact you as the SGO recognition process begins in your state. No obligation — just get in line early.
2
2026 — Early 2027
SGO Recognition
Once Treasury finalizes guidance, Accord Kids will complete the Scholarship Granting Organization recognition process in opted-in states. Your school will be notified when it's active in your area.
3
January 1, 2027 +
Students Receive Scholarships
Donor contributions open January 1, 2027. Eligible families at your school can apply for EFTC-funded scholarships — completely free of charge — to help cover tuition and required enrollment costs.
Eligible Expenses

What Scholarships Can Cover

Accord Kids scholarships are designed to cover the costs a family receives when enrolling their child at your school.

  • School tuition
  • Mandatory enrollment fees
  • Required textbook & course fees
  • Mandatory activity & lab fees
  • Required uniform & supply fees
  • Other costs charged at enrollment

Source: ED/Treasury Joint Fact Sheet

Not Covered

What They Cannot Cover

These funds are strictly for individual student scholarships — not institutional support.

  • Building programs or capital campaigns
  • Facilities improvements or construction (scholarships go to students, not school buildings or capital campaigns)
  • Non-educational expenses or expenses unrelated to school enrollment or attendance (expenses must qualify under §530(b)(3)(A); final guidance on specific eligible expenses is pending from IRS)
  • Withdrawal fees
  • Administrative costs or overhead
  • Teacher salaries or operational expenses

Scholarship funds are awarded to eligible students and applied toward costs charged at enrollment. Schools cannot redirect scholarship funds to institutional uses.

State Participation

North Carolina Is In — National Picture

Your state must opt in for students to receive EFTC scholarships. Check the map below to see the current status of your state. Urge your governor to opt in →

✅
State Status

North Carolina Is In ✅

North Carolina has officially opted into the EFTC program. Donors receive a federal tax credit and North Carolina students can receive scholarships through Accord Kids. Applications open January 1, 2027.

See how other states are participating — donors receive the federal tax credit regardless of their home state.

Common Questions

FAQs for Schools & Principals

Everything your school needs to know about the Education Freedom Tax Credit and Accord Kids.

The Education Freedom Tax Credit allows taxpayers to receive a federal tax credit of up to $1,700 for charitable contributions made to a Scholarship Granting Organization (SGO). Unlike a deduction, a tax credit reduces your federal income tax owed dollar-for-dollar. Any U.S. citizen or resident in a state or D.C. who makes a qualifying contribution to an SGO may claim the credit. Contributions open January 1, 2027.
An SGO is a nonprofit charity that uses at least 90% of its income to fund scholarships for eligible K–12 students seeking education choice options. SGOs must be listed on a participating state's official SGO list and are prohibited from funding anything other than qualified elementary or secondary education expenses.
First, a state governor opts in, making it a "covered state" and publishing an official SGO list. Second, a donor makes a cash contribution to an SGO on that list. Third, when filing their federal income tax return, the donor claims a dollar-for-dollar credit of up to $1,700. If the full credit cannot be used in one year, the unused portion carries forward for up to five years.
Students who are eligible to enroll in a public elementary or secondary school and whose household income does not exceed 300% of the area's median gross income qualify for scholarships. Most students in participating states will be eligible, meaning the more donors who participate, the more students can be served. Look up your county's income limit →
Accord Kids scholarships are designed to cover the costs a family receives when enrolling their child — tuition, mandatory enrollment fees, required textbook and course fees, and other charges billed at the time of enrollment. Withdrawal fees and elective add-ons are not covered. Scholarship amounts are not capped at $1,700; the SGO determines the award based on its mission and available funds.
No. This program does not divert money from local or state taxes, which make up the large majority of public school funding. Instead, it encourages voluntary charitable giving from taxpayers. The federal tax credit offsets federal income taxes — it does not redirect any local or state education funding.
In December 2025, the Treasury Department and IRS issued a request for comments and guidance allowing states to declare advance intent to participate for 2027. Final implementing rules and guidance for taxpayers, charities, and states are expected to be issued in 2026. The credit becomes available for contributions made on or after January 1, 2027.
No. EFTC funds are scholarships for individual students — not grants to schools. The money must be used for qualified education expenses of eligible students, such as tuition, mandatory enrollment fees, and required course fees. Schools cannot direct scholarship funds toward capital campaigns, building projects, facilities improvements, or any other institutional expense. The scholarship is awarded to the student (or family) and applied toward costs charged at enrollment.

These are two separate programs that can work side by side. Key differences:

Source of funding: State programs like the NC Opportunity Scholarship are funded by state tax dollars. The EFTC is a federal tax credit funded by private charitable donations — it does not draw on state budgets at all.

Who generates the money: State voucher programs are funded by government. The EFTC is funded by individual donors who receive a dollar-for-dollar federal tax credit in return.

Income limits: The EFTC uses a federal standard — household income at or below 300% of the area median gross income — making roughly 96% of K–12 students nationally eligible (per Treasury proposed regs, 91 FR 62818).

Can you use both? Yes — a student can potentially receive both a state scholarship and an EFTC-funded scholarship, as long as they are from separate organizations for separate expenses. They are complementary, not competing.

Bottom line: The EFTC adds a brand-new source of scholarship funding on top of — not instead of — what states already offer. It costs the state nothing and expands family options.

No — Accord Kids lets families apply for scholarships completely free of charge! There is no application fee and no cost to families at any point in the process. Contact your Christian school for more information about applying.
For Schools & Principals

Register Your North Carolina School with Accord Kids

Free, and takes about two minutes. Register now to position your students to receive EFTC-funded scholarships when the program opens January 1, 2027.

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Free · Open to all accredited Christian K–12 schools in participating states

Questions? Contact Accord Kids →

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