The Educational Choice for Children Act

Yes. You may qualify for both credits if you make separate donations to each program; however, you cannot claim both credits for the same contribution.

No. Only individual taxpayers can claim the federal credit.

No. Donations cannot be earmarked for a specific student. SGOs independently determine scholarship recipients based on eligibility and available funds.

No. The program is uncapped; there is no aggregate limit on the total credits available.

Families in non‑participating states cannot receive scholarships, though taxpayers can still claim the credit. Encourage your governor to opt in using our letter‑writing tool.

ECCA scholarships are available to households at or below 300% of Area Median Gross Income (using HUD's annually-published AMI tables, by county and family size). Scholarships can fund private school tuition, microschool and homeschool expenses, tutoring, and educational therapies including for students with disabilities — expanding options for families who can't otherwise access them. By statute, SGOs must give priority to (1) students who received a scholarship from the SGO the prior school year and (2) siblings of prior recipients; some SGOs further prioritize special-needs students or specific underserved communities, though that is at each SGO's discretion.

No. ECCA is funded entirely through federal tax credits with zero impact on state budgets. There is no new state spending, no fiscal burden on state governments, and administrative oversight is handled by the IRS and U.S. Department of the Treasury.

ECCA scholarships support a diverse range of educational options including private schools, public charter schools, microschools, and homeschooling programs. The emphasis is on innovation and meeting individual student needs rather than one-size-fits-all approaches.

ECCA scholarships can be used for specialized services often critical for students with disabilities, including occupational therapy, physical therapy, behavioral therapy, speech-language services, assistive technology, and access to schools with specialized instruction designed for specific learning needs.

As Colorado Governor Jared Polis stated, 'I would be crazy not to opt in.' If a state doesn't participate, federal tax dollars from its residents will flow to scholarships in other states instead. Opting in captures these federal resources at zero state cost, serves working families across the income spectrum, and gives families educational options without affecting state-budget priorities.

No. The ECCA program has strong safeguards built in. The credit is capped at $1,700 per tax return, which doesn't create significant incentive for fraud. Qualifying donations must be made in cash and cannot be earmarked for specific students. The IRS and U.S. Department of the Treasury provide federal oversight, and scholarship granting organizations must be 501(c)(3) public charities (not private foundations) that use at least 90% of their income for scholarships. They must file annual reports and serve at least 10 students across multiple schools.

You can receive a dollar-for-dollar federal tax credit of up to $1,700 per year by donating to a qualified scholarship granting organization. This means if you donate $1,700, you reduce your federal tax liability by $1,700. Unused credits can be carried forward for up to five years. If your state also offers a scholarship tax credit, you may qualify for both by making separate donations.

This is currently being clarified by the U.S. Department of the Treasury. The law states 'any taxpayer' may receive up to $1,700, but it's not yet clear whether married couples filing jointly can each claim $1,700 (for $3,400 total) or are limited to $1,700 per household. Treasury guidance will provide the final answer on this important question.

No. ECCA is funded through federal tax credits, not through state or local education budgets. Public school funding remains unchanged. Additionally, ECCA scholarships can be used to support students in public schools through tutoring, dual enrollment courses, educational therapies, and specialized services. The program expands options without reducing public school resources.

ECCA is a federal tax credit against your federal income taxes, while state scholarship tax credits reduce your state tax liability. ECCA offers up to $1,700 per taxpayer with no aggregate cap nationwide. State programs vary by state with different credit amounts, caps, and eligibility rules. You can potentially benefit from both programs by making separate donations one to a federal ECCA-qualified SGO and one to a state-qualified organization.

The ECCA tax credit becomes available starting with the 2027 tax year (taxes filed in 2028). Donations made in 2027 or later to qualified scholarship granting organizations in participating states will be eligible for the credit. States are currently opting in and designating qualified SGOs in preparation for the 2027 launch.

Scholarship granting organizations (SGOs) are responsible for verifying eligibility. They must confirm that recipients live in households at or below 300% of area median income and are eligible to enroll in public K-12 schools. SGOs file annual reports with oversight from the IRS and Department of the Treasury. This verification process ensures scholarships reach the intended beneficiaries working families seeking educational options.

Yes. ECCA scholarships can cover a wide range of homeschooling-related expenses including curriculum materials, educational software, online courses, tutoring services, educational therapies, books, supplies, and technology. This makes the program valuable for families who choose to educate their children at home.

At least 90% of all donations to qualified scholarship granting organizations must be used for scholarships. This is a federal requirement. SGOs can use up to 10% for reasonable administrative costs. This high percentage ensures that the vast majority of every donation directly benefits students and families.

To become a qualified SGO, your organization must: (1) be a 501(c)(3) public charity (not a private foundation), (2) operate in a state that has opted into ECCA, (3) be designated by that state as an eligible SGO, (4) commit to using at least 90% of donations for scholarships, (5) serve at least 10 students across multiple schools, and (6) verify recipient eligibility and file annual reports. Contact your state education agency for specific designation procedures.

Yes. Many existing scholarship granting organizations that currently operate state-level scholarship tax credit programs can also participate in ECCA, provided they meet the federal requirements and receive state designation. Organizations can administer both state and federal scholarship programs simultaneously, expanding their ability to serve families.

Qualified SGOs must file annual reports demonstrating compliance with ECCA requirements. These reports verify that at least 90% of donations were used for scholarships, that recipients met income eligibility requirements (300% of area median income or below), that scholarships were awarded to at least 10 students across multiple schools, and that no donations were earmarked for specific students. The IRS and Department of the Treasury oversee this reporting.

Yes, within the federal framework. SGOs can establish additional selection criteria beyond the federal income requirement, such as prioritizing students from specific geographic areas, students with special needs, first-generation students, or students from underserved communities. However, scholarships must serve at least 10 students across multiple schools, and all recipients must meet the federal income eligibility threshold.

The timeline varies by state. Once a state opts in and establishes its SGO designation process, qualified organizations can typically apply and receive approval within weeks to a few months, depending on the state's procedures. Organizations should prepare by ensuring their 501(c)(3) status is current, developing scholarship selection and verification processes, and establishing reporting systems to meet federal requirements.