Understanding the Education Freedom Tax Credit

Departments of Education and Treasury Publish Fact Sheet on School Choice Provision

he Departments of Education and Treasury have published a joint Fact Sheet on the Education Freedom Tax Credit (EFTC). This historic tax provision was established through the Working Families Tax Cut Act (also known as the One Big Beautiful Bill) and is set to launch on January 1, 2027. The tax credit scholarship provision allows a dollar-for-dollar federal tax credit of up to $1,700 for donations made to scholarship-granting organizations that then provide scholarships to families to use for educational purposes for their children, including private school tuition.

While the program is a federal program, governors of each state must choose to opt in for families in their states to be able to participate. To date, 27 states have opted in to the program.

“This program will help families afford key education services—like tutoring and scholarships—so they can tailor their child’s educational journey and access opportunities that meet their needs,” stated Secretary of Education Linda McMahon in a press release. “Every student learns differently, and this investment ensures more families—regardless of income—have real options to pursue education opportunities that help their children thrive.”

Secretary of the Treasury Scott Bessent noted the importance of this tax provision in supporting families and improving educational opportunities: “Power belongs in the hands of parents—not Washington bureaucrats whose ill-targeted spending has driven down test scores and promoted woke ideology.”

In a recent episode of the AACS Today podcast, Jamison Coppola and Matt Ticzkus discussed the potential impact of this school choice provision to provide new educational opportunities for families, and how the AACS has established its own scholarship-granting organization for member schools. To listen to the podcast, click here.

Nest Issue Andrew Nelms of Student First Technologies which manages the Home Scholarship technologies and payment syetem  and Jamison Coppola of American Association Of Christian Schools, will discuss some of the deatils of how this program will affect West Virginia families.  

AACS Legislative Office

AACS Legislative Office

This Week

The Money Trail

The Money Trail

How West Virginia School Districts Spent Themselves Into Crisis

Turning Tides

Turning Tides

As Lawsuits Multiply, Transgender Reversal Movement Gains Momentum