Education Freedom Tax Credit · Tennessee

Tennessee Families Deserve Educational Freedom

When you donate to an approved Scholarship Granting Organization, you receive a dollar-for-dollar federal tax credit of up to $1,700 per person — and Tennessee students gain access to the Christian school their family has chosen. Contributions open January 1, 2027.

As of early 2026, the program is awaiting final guidance from the Treasury Department — once issued and once the SGO recognition process begins for Tennessee, Accord Kids will seek recognition so TN children can access the Christian school their family has chosen.

$1,700

Maximum federal tax credit per donor per year

100%

Dollar-for-dollar reduction in your federal taxes owed

2027

Credits available for contributions starting January 1, 2027

Simple Process

How the Federal Tax Credit Works

The Education Freedom Tax Credit is a federal program established under the Working Families Tax Cuts Act. Any U.S. taxpayer can donate and claim the credit. The program is awaiting final guidance from the Treasury Department before SGO approvals begin.

Anyone Can Donate

Any U.S. citizen or resident can contribute to an approved SGO and claim the federal tax credit — no matter what state you live in. Once federal guidance is issued and the SGO recognition process begins for Tennessee, Accord Kids will seek recognition.

You Make a Charitable Contribution

You donate cash to an approved Scholarship Granting Organization (SGO) powered by the Tennessee Association of Christian Schools and the American Association of Christian Schools’ Children’s Scholarship Fund, in accordance with federal requirements. Contributions open January 1, 2027.

Claim Your Dollar-for-Dollar Credit

After the SGO is recognized, when you file your federal taxes, you receive a dollar-for-dollar credit of up to $1,700 per person. Unlike a deduction, a tax credit directly reduces the taxes you owe — making your real out-of-pocket cost potentially $0.

Tennessee Students Receive Scholarships

The approved Scholarship Granting Organization (SGO) distributes at least 90% of contributions as scholarships to eligible Tennessee students for tuition, fees, and other qualified K–12 education expenses at the Christian school of their family’s choice.

Why Tennessee Accord Kids

Federal Credit. Tennessee Impact.

Tennessee Accord Kids connects donors with a federal tax credit opportunity that supports Christian school scholarship access for students across the Volunteer State.

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Dollar-for-Dollar Tax Credit

Your donation comes back to you as a federal tax credit — up to $1,700 per year — the same limit applies to both single and joint filers. For most donors, the net cost is $0.

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Rooted in Christian Education

Tennessee Accord Kids is supported by the Tennessee Association of Christian Schools (TACS) and the American Association of Christian Schools’ Children’s Scholarship Fund — with decades of experience serving Tennessee Christian schools.

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Tennessee Has Opted In

Tennessee’s Governor has opted the state into the EFTC program. Once federal guidance is issued and the SGO recognition process begins, Accord Kids will seek recognition to operate in Tennessee.

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5-Year Carryforward

If your donation exceeds your tax liability in 2027, the unused credit carries forward for up to five years — you never lose the benefit.

What Scholarships Cover

Tuition Christian School Tuition & Feesamp; Enrollment Costs

Private & Christian school tuition
Academic tutoring & enrichment
Curriculum & instructional materials
Technology for educational use
Special needs services & support
Transportation to and from school

Common Questions

Frequently Asked Questions

Everything you need to know about Tennessee Accord Kids and the Education Freedom Tax Credit.

Tennessee Accord Kids is a scholarship platform supported by the Tennessee Association of Christian Schools (TACS) and the American Association of Christian Schools’ Children’s Scholarship Fund. Through this platform, donors support Accord Kids, the approved Scholarship Granting Organization (SGO), which receives contributions and distributes at least 90% as scholarships to eligible Tennessee K–12 students seeking a Christian education.

The Education Freedom Tax Credit (EFTC) is a federal program established under the Working Families Tax Cuts Act. Donors receive a dollar-for-dollar federal income tax credit of up to $1,700 per year (the same $1,700 limit applies to single and joint filers) for qualifying contributions to an approved Scholarship Granting Organization (SGO). Unlike a deduction, a tax credit directly reduces the amount of federal income tax owed.

Yes. Tennessee’s Governor has opted the state into the Education Freedom Tax Credit program. The program is still awaiting final guidance from the U.S. Treasury Department. Once guidance is issued and the SGO recognition process begins, Accord Kids will seek recognition to operate in Tennessee so eligible TN students can receive scholarships.

No. Any U.S. citizen or resident can donate to an approved SGO and claim the federal tax credit, regardless of what state they live in. If you have family, friends, or a heart for Christian education in Tennessee, your donation is welcome from anywhere in the country.

Students who are eligible to enroll in a public elementary or secondary school in Tennessee and whose household income does not exceed 300% of the area’s median gross income may qualify to receive scholarships. Most Tennessee families will be eligible. See income eligibility levels by state →

For most donors, the out-of-pocket cost is $0 — because the federal tax credit offsets the donation dollar-for-dollar. For example, if you donate $1,700 and owe at least $1,700 in federal income tax, your net cost after applying the credit would be $0. Use our tax scenario calculator to estimate your personal benefit.

No. Federal law prohibits Scholarship Granting Organizations from earmarking or setting aside contributions for a specific student. When you donate, your contribution goes into a scholarship fund that benefits eligible Tennessee students broadly, awarded based on eligibility criteria rather than donor preference.

Contributions to the approved Scholarship Granting Organization (SGO) are expected to open on January 1, 2027. You can reach out now and we will walk you through the process at launch. Final guidance and regulations from the U.S. Treasury Department and IRS are expected to be issued in 2026.

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.

On your Form 1040, your total federal income tax liability is shown on Line 24 ("Total tax"). This is the number that matters for the EFTC — it represents your tax owed before any withholding or estimated payments are subtracted. If Line 24 is $1,700 or more, a $1,700 donation to Accord Kids could reduce that to $0. If you file a prior-year return, check the same line. Your tax software or preparer can pull this number quickly. You can also use our tax scenario calculator to estimate your 2027 liability before you file.

Ready to Give?

Get in Touch

The Education Freedom Tax Credit opens for contributions on January 1, 2027. Reach out and we’ll walk you through the process when contributions open.

✅ Tennessee Is In

Tennessee has opted into the EFTC program. Once federal guidance is issued and the SGO recognition process begins, Accord Kids will seek recognition so Tennessee families can benefit directly.

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Tennessee Accord Kids Contact Form

Contributions open January 1, 2027 — reach out now

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